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SemCAMS to build 60-MMcf/d Montney sour gas plant to support 15-year contracts

A SemGroup Corp. subsidiary plans to build a new sour gas plant in Alberta serving the Montney and Duvernay plays after reaching 15-year gas processing agreements with Murphy Oil Corp.'s Murphy Oil Co. Ltd. and Athabasca Oil Corp.

SemCAMS's proposed Smoke Lake gas plant would have a processing capacity of 60 MMcf/d of gas, with 90% of the available capacity locked in by contracts. The plant may be expanded depending on customer needs, and SemCAMS is in talks with other area producers who may need additional capacity, according to a Dec. 21 release.

The facility would connect to SemCAMS's KA and K3 gas plants to make use of their sour processing and ancillary services. The resulting network of gas plants would allow for rerouting during turnarounds or outages to improve reliability.

With the Smoke Lake plant and the under-construction Wapiti plant, SemCAMS's sour gas processing capacity in Canada would total 1.7 Bcf/d, mostly serving the Western Canadian Sedimentary Basin.

Murphy Oil is an Arkansas-based oil and exploration and production company. Its subsidiary, Murphy Oil Co. Ltd., is an oil and gas producer based in Calgary, Alberta. Athabasca Oil is an energy company with operations focused in the Western Canadian Sedimentary Basin.