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Registration for the 5 Workshops, SOGAT CONFERENCE and free attendance for the SOGAT EXHIBITION will close on MARCH 17.


Abu Dhabi to host latest international developments in gas conditioning

The ADNOC Group will be hosting the SOGAT 2016 event in Abu Dhabi from March 20-24 were several new technical activities will be announced at a time when the demand for sales gas maintains its required level despite the oil price business environment.

SOGAT 2016 is comprised of three separate entities, several training workshops, a 3 day international conference and associated exhibition.

Within the latter AMETEK will be launching for the first time in the Middle East , their next generation sulphur recovery tail gas analyzer. This new analyzer uses three intelligent diagnostic models to address process failure modes and is a vital component in the gas conditioning process. Another first time exhibitor will be COMPEX LLC; part of Moscow based BPC Engineering, with their 14-year experience in the manufacturing, supply and installation of advanced gas treatment systems including rotary screw, reciprocating and centrifugal compressors, gas booster skids, liquid ring compressor packages and multi-phase hermetic pumps in modular design for oil & gas conditioning applications.

The first workshop which covers all aspects of Sulphur Recovery from a practical standpoint including trouble shooting is very timely given SRU concerns across the region.

The SOGAT conference will see new presentations on oxygen enrichment and its application in the upgrading of existing sulphur recovery units and in the design of large green field plant processing lean feed gases. This presentation is of great interest to potential Abu Dhabi gas expansion plans and will focus on the analysis of potential capital and operating cost savings of critical importance in the current business climate. The dangers of sour gas are well known and local fields with their high, toxic H2S content are of real concern to the safety of operational NOC personnel. The programme will feature an emergency response panel centered around new procedures of employing adequate respiratory equipment (RPE) given that a sizable number of ADNOC employees have facial hair which together with their facilities operating with H2S in concentrations exceeding fatal concentration demands that the RPE be effective and available to all.

CNPC, Chevron Commence Production at Chuandongbei Gas Project in Sichuan

China National Petroleum Corp. (CNPC) reported Monday that the Chuandongbei Sour Gas Project developed by the company and Chevron Corp. has become operational, with commercial gas produced from the Luojiazhai Gas Field processing plant in Sichuan Basin in southwest China.

The Chuandongbei project, occupies an area of over 309 square miles (800 square kilometers), consists of several gas fields including the Luojiazhai, Tieshanpo, and Dukouhe-Qilibei gas fields.

The Luojiazhai Gas Field, designed to produce 109.53 billion cubic feet (Bcf) or 3 billion cubic meters (Bcm) per annum, currently has a daily production of 346 million cubic feet (9.8 million cubic meters). CNPC added that several facilities related to the project have been completed, including a 109.53 Bcf (3 Bcm) per annum purification plant, a 400 kilotons per annum sulfur plant, a gas gathering station, and an 18 mile (29 kilometer) -long gas collection pipelines.

The Chinese state-owned company holds a 51 percent interest in the project, while Unocal East China Sea Limited (UECSL) -- a wholly owned by Chevron -- has a 49 percent operating interest in the Chuandongbei project. Both companies signed an agreement to develop the Luojiazhai Gas Field in 2009.

Occidental to expand Al Hosn sour gas project

Occidental Petroleum is looking at the possibility of the expansion of Al Hosn sour gas project in Abu Dhabi which reached its full production capacity last year.

“Abu Dhabi would like to have additional gas. We would certainly want to make that happen. The expansion would add about 25 per cent to 50 per cent production to the plant,” said President and Chief Operating Officer of Occidental Petroleum Vicki Hollub speaking to Gulf News in an exclusive interview at the company’s office in Abu Dhabi.

She said they are doing engineering evaluation of the project now and will take a decision on the expansion in a year or two.

Al Hosn gas project began operations last year and reached its fill capacity of one billion cubic feet per day (bcf) in the second quarter.

The multibillion dollar project is being developed by Abu Dhabi National Oil Company (Adnoc) in partnership with Occidental petroleum to produce usable gas from Shah’s high-sulphur field. Occidental Petroleum has 40 per cent share in the project.

“The project came online in January last year. It is full capacity now, running a little bit over capacity. It’s been a great partnership with Adnoc. We were able to merge our expertise and the expertise they have to make that project get done on time and on budget.”

“Al Hosn not only is one of the largest gas plants of its type processing sour gas but also we get the sulphur to the port by rail. We move about 10,000 tonnes a day of sulphur.”

At one time, about 30,000 people were working on the project located in the remote desert, about 210 kilometres from Abu Dhabi. The project is likely to contribute significantly to the energy needs of Abu Dhabi and the UAE for over 30 years.

No plans to reduce stake

Speaking about Dolphin energy project, which the company is involved in the transportation of gas by subsea pipeline from Qatar to the UAE, she said it is an important project and they don’t have any plans to reduce their stake.

“We are dividend paying company. It is important for us to have good reliable cash flow. Both Al Hosn and Dolphin provide two sources of free cash flow. We are not considering reducing our interest in Dolphin.”

On low oil prices and impact on the company, she said they are in a much better position when compared to many other oil companies because of its diversified business including chemicals and the gas projects in the UAE.

“We have a strong balance sheet. We ended last year with a significant amount of cash and very low debt. Our debt-cash ratio is only 22 per cent, which is much lower than lot of other companies.”

“We have a portfolio of projects and types of oil and gas assets that enable us to go down to very low oil price to continue operations. We wouldn’t consider this price scenario to cut back on production. We have lot of different opportunities for development.”

The low oil price environment had been wake up call for the industry, she said.

“We as an industry got used to high prices and a lot of inefficiency had crept into our business. So I think now it is the time to sit back and take a look at where we are and what we need to do to get our business back to a point where we can be successful in low oil price environment.”

However, the company is undertaking cost cutting measures as oil prices plummet to record low levels.

“We as a company striving to do all we can to significantly lower our cost structure. In all the areas we operate, we are reducing our costs to bare minimum as we can and be efficient.”


On the lifting of 40 year ban by the US government on crude exports, she said it certainly creates an opportunity for the companies in the US.

“The refineries in the US are not really built to process lighter crude so there will be an opportunity for lighter crude to be exported.”

The company bought a naval station from the US government a few years at Ingleside for $80 million and it intends to use the facility to move not only their products but also products from other companies.

“The facility would be valuable to us as ban on crude exports is lifted.”

The company is now working on to develop Al Hail and Ghasha oilfields project with Adnoc in the UAE. Both companies will cooperate in carrying out a number of activities that reach up to $500 million (Dh1.83 billon) in investment.

“Right now it is a technical evaluation stage but we will love to finish the technical evaluation and move into some sort of development programme.”

The company currently doesn’t have bids submitted for Abu Dhabi concessions, according to Hollub. The company did not expand further.

Adnoc last year granted 10 per cent stake to French oil major Total, 5 per cent to Japan’s Inpex and 3 per cent to South Korea’s GS Energy. It is yet to take a decision on the remaining companies to be part of the new concession.

Etihad comments valid as first time reported and will get paper on experiences

Etihad Rail has transported than two-million tonnes of sulphur during the past 12 months on behalf of Abu Dhabi National Oil Company (ADNOC).

Trials conducted by Etihad Rail’s operating partner, ERDB, “are now running on a daily basis”.

Faris Saif Al Mazrouei, CEO of Etihad Rail, said: “Transporting more than two-million tonnes of sulphur in the past year during our testing and commissioning and trail operations phases is a very proud achievement for Etihad Rail, our operating partner, ERDB, and the UAE as a whole, as it clearly demonstrates Etihad Rail’s unique value proposition as a reliable, safe, and environmentally friendly mode of transport.

“Our success to date would not have been possible without the tremendous support of our customer and partner, ADNOC. Going forward, we will continue to build on this success as we move towards our target of transporting more than seven-million tonnes of sulphur every year once we enter into full commercial operations,” he added.

Trials have been running on a daily basis since the completion of the 264km Stage One route last year. Full commercial operations are expected to start shortly, once Etihad Rail is granted its regulatory approvals. In turn, the volume of sulphur transported by rail is likely to increase significantly from 2016 onwards.

The sulphur-related figures offer insight into the significant economic and environmental benefits that the federal railway network will bring to the UAE, according to Etihad Rail. Its trains have replaced more than 66,000 truck trips from the western region of Abu Dhabi during the past 12 months.

Aramco's Wasit plant almost complete, say sources

Saudi Aramco has almost finished the construction of its giant Wasit gas project but is processing gas from the Karan gas field and not from the offshore fields designated to feed the gas plant, according to a report from Reuters.

In April, reports said that industry sources indicated that Aramco had started testing parts of the plant with gas from the oil giant's Master Gas System (MGS).

This lead to hopes that gas from Wasit would help meet domestic demand during the Saudi Arabia's summer season.

However, an industry source familiar with the matter told Reuters that the plant is not expected to start processing non-associated gas, which contains no oil, from offshore sour gas fields Arabiyah and Hasbah before the end of the year due to technical difficulties.

"If these plants are not scaled to the required capacity to remove all the H2S and C02 content of the Wasit inlet gas, it would mean the sales gas impurities would be higher than what the national gas grid can accept," said Sadad al-Husseini, a former senior executive at Saudi Aramco.

"The solution would be to expand the capacity of these units and process a smaller volume of inlet gas in the interim period," he said.

"This is not a big technical issue but it means the project will not operate at full capacity until the sour gas processing expansion is completed."

"This delay is not critical because the peak gas demand season is now almost over and because gas reserves are huge and Aramco has always been committed to maintaining very strict standards of plant safety and reliability," said Husseini.

Saudi Aramco declined to comment on the report.

Voestalpine Group wins deal on UAE gas project

Austria's voestalpine Group has secured has secured a contract to deliver 95,000 tons of premium linepipe plates for the IGD-E natural gas project in Abu Dhabi, UAE.

Over the next two years Abu Dhabi is constructing a 114km high-pressure IGD-E pipeline to supply natural gas extracted in the Arabian Gulf to the city, in order to meet its 15% annual growth in demand for natural gas.

Construction is scheduled for completion in 2017, enabling an additional 11 million cubic metres of natural gas to be produced and piped daily.

Voestalpine is supplying its long-term partner, Indian tube manufacturer Jindal SAW, with 95,000 tons of sour-gas-resistant linepipe plates for the pipeline construction.

The material will be processed on site into pipes with a diameter of around a metre (42 inches) by the partner company on behalf of gas company GASCO which is in charge of the project. The delivery period for the contract runs from October 2015 to March 2016.

Wolfgang Eder, chairman of the Management Board of voestalpine AG, said: "Market conditions in the energy sector are extremely challenging at the moment. As the leading manufacturer of high quality and innovative high-strength linepipe plates, that makes it all the more satisfying to have won another major contract.“

Aramco awards $4.7bn contracts for Fadhili plant

Saudi Aramco has selected Spain's Tecnicas Reunidas and Britain's Petrofac for the award of $4.7bn worth of contracts for the Fadhili gas plant in Saudi Arabia, industry sources told Reuters on Tuesday.

Petrofac has reportedly won the package for sulphur recovery unit worth $1.7bn, while Tecnicas won the other two packages for the gas processing unit ($2bn) and utilities and offsites ($1bn).

"They received notification last week; a letter of intent," said one of the sources.

The project includes three construction packages for the gas processing unit, utilities and offsite facilities such as nitrogen, steam, power and water systems, and sulphur recovery.

Once completed the Fadhili plant will be able to process 2.5bn standard cubic feet per day (scfd) of sour gas from the onshore Khursaniyah and offshore Hasbah fields.

Reuters reported in July that Italy's Saipem and South Korea's Daelim Industrial were among the bidders, with Tecnicas bidding for two packages on its own, and in conjunction with South Korea's GS Engineering and Construction for the third.

A different kind of presssure - Kashagan update

This giant field in the shallow waters of the northern Caspian Sea offshore Kazakhstan ticks many boxes in terms of featuring some of the upstream industry’s biggest challenges rolled into one: high reservoir and process pressures, high levels of toxic and ultracorrosive hydrogen sulfide (H2S) gas, an extreme climate and the remotest of locations. At the manmade Island D hub at the Kashagan Field in the Caspian Sea, liquids and gas will be initially separated for piping onto the shore facility. (Source: Eni)
estimate of about 38 Bbbl.

With a relatively low recovery factor of between 15% and 25% due to the complexity of the reservoir, the recoverable reserves figure is presently put at between 7 Bbbl and 13 Bbbl. The eventual target for the owners is a huge plateau production figure of 1.5 MMbbl/d of oil. Originally that figure was set to be achieved by 2019, although that date has since slipped back several years. The main reservoir is located more than 3,962 m (13,000 ft) below the seabed and under very high pressure of approximately 11,000 psi. The light oil has a high gas-oil ratio and a high H2S content. Being heavily overpressured, it presented Eni and its partners with drilling and processing challenges right from the start.

The company managed to negotiate these challenges from discovery to Phase 1 production in 13 years, which was admittedly eight years after the field’s original planned startup date. Even so, the project’s NCOC consortium owners—KazMunaiGaz, Eni, ExxonMobil, Shell, Total, China National Petroleum Corp. and Inpex—were not dissatisfied after a successful drilling program saw 12 high-pressure wells (with 20% H2S present) start Phase 1 production Sept. 11, 2013. When it began flowing, Claudio Descalzi, Eni’s COO for E&P, said Kashagan was “one of the most complicated projects in the world.” With the execution of the field’s first phase being overseen by Italian major Eni on behalf of the North Caspian Operating Co. (NCOC) consortium, this high-pressure but low-temperature light oil field (45°API) is perhaps best known within the industry for two things—its huge level of reserves and the high content of sour gas (at up to 20% it is one of the highest concentrations encountered by the offshore industry thus far). The sour gas is a very clear and present danger for all those working on the development, being so toxic that it would prove fatal in less than a minute to anyone breathing it. Gas masks, unsurprisingly, are a must. Read More

Iran to offer 3 gas fields for investment at London conference

Development of North Pars, Golshan and Ferdowsi gas fields will be offered to investors at the upcoming London conference where Iran is due to unveil its new contract model, managing director of Pars Oil and Gas Company (POGC) said, according to Shana, the oil ministry's news agency.

North Pars off-shore gas field covers an area of 25 square km and holds 57.1 trillion cubic metres of sour gas, while Golshan gas field is located south of Iran and is expected to produce 2 billion cubic feet of gas once it is fully developed, Shana said. Ferdowsi is also off-shore gas field.

Iran had defined a new model contract which it calls its integrated petroleum contract (IPC) - offering longer terms and more liberal conditions. It plans to unveil the details of the contracts in London in December.

Iran and six world powers agreed a deal in July to curb Tehran's nuclear programme, but sanctions imposed in 2012 are unlikely to be removed until next year, as the deal requires approval by the U.S. Congress. Nuclear inspectors must also confirm that Iran is complying with the deal.

Many foreign energy companies have already shown interest in reestablishing business in Iran, with delegations of leading business figures from European and Asian countries have been visiting Tehran over the past weeks.

Iranian officials had said Tehran had identified nearly 50 oil and gas projects worth $185 billion that it hoped to sign by 2020. OPEC-member Iran has the world's largest gas reserves and is fourth on the global list of top oil reserves holders.

Iran has huge gas reserves. It exports small quantities to Turkey but has been unable to increase production quickly enough to meet its own demand and northern Iran relies heavily on gas imports from Turkmenistan, especially for heating in winter.

Saudi Aramco extends bidding for Hasbah gas field expansion

State oil giant Saudi Aramco has extended by almost a month bidding for the expansion of the offshore Hasbah sour gas field which will feed the planned Fadhili gas plant, industry sources said.

Gas is a top priority for Saudi Arabia as it tries to burn less crude oil for power generation and water desalination.

Bidding for work on the project, Hasbah II, which includes platforms and pipelines, is due to close on Oct.15 from Sept.20, said one of the sources, as firms needed more time to prepare their offers. Saudi Aramco declined to comment on the report.

Last month, industry sources in Saudi Arabia said foreign engineering firms have submitted bids to build the Fadhili gas plant in the east of the kingdom at an estimated cost of $5 billion to $6 billion.

The expansion of Hasbah will supply the Fadhili plant with 2 billion standard cubic feet per day (scfd) of gas while the remaining 500 million scfd will come from Khursaniyah.

Hasbah and another offshore gas field Arabiyah will feed another major gas plant Wasit, which sources said in April began testing operations.

Pars Oil & Gas: POGC eyes 1st phase 19 refinery train by winter

Managing-director of Pars Oil and Gas Company (POGC) said the first refinery train of phase 19 development of the massive South Pars gas field will be operational by winter and will feed the national gas trunkline.

Ali-Akbar Shabanpour said the POGC has closed its ranks to complete the phase, adding that the gas recovered and refined from Phase 19 will be injected to the national trunklines. Phases 15 &16 will also become fully operational by the end of the current calendar year to March 2016.

He said Platform C of Phase 19 is prioritized to be completed by winter, adding pipelaying operations for the platform are finished and it is being prepared for pre-startup stage.

Shabanpour also said that SPD2 platform will also be installed at the phase. Two refinery trains of the phase with offshore feedstock supply will come on-stream by the end of the year provided that the financing of the projects take place as planned, he said.

He also said two other refining trains belonging to phases 6 to 8 of the gas field are also planned to be constructed by the end of the year. The refineries will be fed by sour and dry gas from the phases. Once completed, Phase 19 will produce 56.6 million cubic meters of sour gas.

Phase 19 development of South Pars is set to produce 50 mcm/d of sweet gas, 75,000 b/d of gas condensate, 400 tons a day of sulfur, 1.05 million tons a year of liquefied petroleum gas and one million tons a year of ethane. This development phase was awarded by Pars Oil and Gas Company (POGC) to a Petropars-led consortium of Petropars Limited and Petropars Iran and Iranian Offshore Engineering and Construction Company (IOEC) in June 2010 under an engineering, procurement, construction (EPC) contract.

Petropars Limited and Petropars Iran are responsible for onshore installations and drilling operations. South Pars, when fully developed, would be producing more than 800 mcm/d in three years.

Iran is incurring $100 million a day in losses for each day of delay in gas recovery from South Pars.

Three more South Pars phases near conclusion

More phases of the South Pars development in the Persian Gulf are nearing completion, according to news service Shana.

Seven wells from Phase 21 are expected to be onstream by October, with the gas injected to Iran’s national trunklines by winter.

Six wells from associated Phase 20 should also be in service by October, added project official Alireza Ebadi, and both phases should be fully operational by October 2016.

Iranian Offshore Engineering and Construction Co. is constructing the platforms for both phases at Khoramashahr Yard, while Pars Oil and Gas Co. has started subsea pipelay operations.

The 105-km (65-mi) long pipelines will deliver sour gas to the refining facilities in Assaluyeh, southern Iran.

Phases 20 and 21 will eventually deliver 50 MMcm/d (1.8 bcf/d) of processed natural gas for domestic consumption, and 75,000 b/d of condensate.

A consortium of Petro Paydar Iranian, SADRA, and MAPNA is developing South Pars Phase 13 under an EPC contract. The platforms are more than 70% complete, said project official Payam Motamed, with platform 13A due to be installed before end-March 2016, with first gas to follow later in the year.

Phase 13 is designed to produce 50 MMcm/d of sweet natural gas and 80,000 b/d of gas condensate.

Foreign firms bid for Saudi Aramco’s Fadhili gas project

Foreign engineering firms have submitted bids to build a gas plant in eastern Saudi Arabia for state oil giant Saudi Aramco at an estimated cost of $5 billion to $6 billion, industry sources said.

Aramco’s decision to move ahead with the project at Fadhili is a sign that Saudi Arabia continues to make big investments that it views as key to its economic future, despite slowing or shelving some less vital projects as the plunge in oil prices since last year hurts state finances.

The new plant is to have a processing capacity of 2.5 billion standard cubic feet per day (scfd) of sour gas from the onshore Khursaniyah and offshore Hasbah fields.

South Korea’s Daelim Industrial, Hyundai Engineering and Construction and Britain’s Petrofac have bid for the project individually, the sources said.

In addition, three consortiums have been formed to bid: South Korea’s GS Engineering and Construction with Spain’s Tecnicas Reunidas, Italy’s Saipem with Japan’s JGC, and South Korea’s Samsung Engineering

together with Daewoo E&C.

The project is split into three construction packages for the gas processing unit, utilities and offsite facilities such as nitrogen, steam, power and water systems, and sulphur recovery. Some bidders are seeking only one package.

Aramco did not respond to a request for comment on Thursday.

It said in its 2014 annual report, published in May this year, that the Fadhili gas plant “is on track to come onstream by 2019”.

It usually takes about two months to evaluate bids for such projects after they are submitted, industry sources said.

Fadhili, together with Aramco’s other gas projects in Wasit and Midyan, are slated to add more than 5 billion scfd of non-associated gas processing capacity, which will help the company meet soaring domestic demand for industrial use and electricity generation in the world’s largest oil exporter.

Gas production remains a top priority for Saudi Arabia as it wants to limit direct crude oil burning for electricity, thereby preserving its ability to increase oil exports.

Oman, Iran hold fresh gas talks

The Islamic Republic of Iran and Oman have launched a new round of talks for finalizing the operations of transporting South Pars sour gas to Oman's Sohar port. "An Iranian consulting company has been chosen for studying the construction of the pipeline, which is expected to transfer Iran's natural gas to Oman,” the MD of the National Iranian Gas Export Company Ali Reza Kameli explained.

He added that the pipeline project will be implemented in two phases, adding that “the onshore part of the project will run for about 200 km from Rudan region to Kuh Mobarak [both in Iran], while the undersea part, will travel for almost another 200 km to connect Kuh Mobarak to Oman’s Sohar port.”

According to the project schedule, the engineering studies on the onshore and offshore phases will be carried out simultaneously in order to prevent any disruption during its implementation, he noted.

In 2013, Iranian Oil Minister Bijan Namdar Zanganeh and his Omani counterpart Mohammed bin Hamad Al Rumhy signed a ‘Memorandum of Understanding’ (MoU) to finalize the gas contract between the two sides.

According to the agreement the Islamic Republic will supply the Persian Gulf state with 10 billion cubic meters of natural gas per annum.

The gas will be pumped through a pipeline that will run all the way from the southern Iranian province of Hormozgan to Oman's Sohar port where it will join the country’s domestic natural gas network.

POGC starts Phase 20&21 pipelay

Pars Oil and Gas Company (POGC) has started underwater pipe-laying operations for Phases 20 and 21 of the massive South Pars gas field, project manager of the phases said. Once completed the 105-km long pipelines will deliver sour gas recovered from the phases to the onshore refining facilities in Assaluyeh, south of Iran, said Alireza Ebadi.

So far 40 km of Phase 21 underwater pipes have been laid while a record has been set for laying 171 pipes in a day's work during the operation, he said in a Shana report.

Platforms of the phases, due to be completed by mid-September, will be installed in their places by the POGC once the pipe-lay operations are over.

Phases 20 and 21 of South Pars gas filed are being developed for production of 50mcm /d of processed natural gas for domestic consumption, a million tons a year of ethane for use by petrochemical plants, 1.05 million tons a year of high-quality liquefied gas for exports and 75,000 barrels a day of condensate.

South Pars, divided into 29 development phases, holds 40 tcm of natural gas, or 21% of world's total gas reserves, and 50 billion barrels of condensate.

South Pars covers an area of 9,700 square kilometers, 3,700 square kilometers of which are in Iran's territorial waters in the Persian Gulf. The remaining 6,000 square kilometers are situated in Qatar's territorial waters.

The gas field is estimated to contain a significant amount of natural gas, accounting for about eight percent of the world's reserves, and approximately 18 billion barrels of condensate.

Blackmer has announced the availability of the NG and NGS Series Reciprocating Gas Compressors as a solution for oilfield applications.

The NG and NGS Series compressors have been designed to optimize operational capabilities in a number of critical oilfield production and storage applications, including wellhead annulus gashead pressure reduction, wellhead vapor control, pressure boosting, tank-battery vapor control and recovery, gas gathering, gas evacuation, gas blanketing, flare elimination, and enhanced oil and gas recovery.

The NG Series compressors, which are available in eight models, are highly efficient and available in heavy-duty single- and two-stage configurations. Their advanced design technology and materials, which includes a standard double seal with single distance piece located between two sets of seals on each piston rod, provide maximum performance with minimum maintenance. This includes leakage control that prevents oil contamination of the compressed gas stream.

The NGS Series compressors have been designed for the handling of sour gas that may contain up to 8% dry hydrogen sulfide (H2S) and are also available in eight models and in single- or two-stage configurations with standard double seal. To enhance their compatibility with sour gas, the NGS compressors also feature select parts (that follow NACE guidelines) in all gas-containment areas and steel wrist pins that ride on steel needle bearings for extra life under severe operating conditions.


SemCAMS Announces Startup of New Pipeline

SemCAMS, a subsidiary of SemGroup® Corporation (NYSE:SEMG), today announced the startup of a new, sour gas gathering line servicing the Wapiti area. The pipeline was officially placed into service on Saturday, June 27, 2015. As previously announced in May 2014, the project is supported by a 10-year term transportation service agreement with NuVista Energy Inc.

"SemCAMS is pleased with NuVista's continued growth and the confidence they have in our ability to handle liquid rich gas production from the Wapiti/Elmworth area," said David Gosse, SemCAMS' vice president and general manager. "We understand how important it is for a producer to get to market on schedule. We have seen a concerted effort by both parties to meet this on-stream date for NuVista's production facilities and SemCAMS' new infrastructure. We look forward to further growth including our previously announced Wapiti Compressor planned for 2016 and proposed new gas plant to provide superior service to area producers."

The new gathering line is adjacent to SemCAMS' existing Northwest Wapiti pipeline and is called the Northwest Wapiti Loop. This new pipeline consists of a 21 mile, 8 inch, sour gas gathering pipeline with 30 mmcf/d of capacity. SemCAMS will own and operate the new pipeline. This line connects to SemCAMS' pipeline system for processing at SemCAMS' K3 plant.

SemCAMS anticipates continued growth for the Montney gas play. To meet producers' development plans, SemCAMS has proposed building a new sour gas plant in the Wapiti/Elmworth area. As proposed, this plant would be designed to maximize NGL recoveries and handle condensate and resource water, with an acid gas transfer and injection scheme, and would connect to TCPL, Alliance, Pembina and SemCAMS' existing sour gas pipeline system. SemCAMS' expanded pipeline system and its K3 plant would bring enhanced reliability to this project by providing an acid gas handling capability.



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