SEMCAMS TO BUILD SOUR GAS PIPELINE IN BC

Energy Processing Canada, Jan/Feb 2008

June 3, 2008 is when the NEB has scheduled an oral hearing on an application from SemCAMS Redwillow ULC, which wants to construct and operate a pipeline to transport 70 mmcf per day of natural gas with up to 30% hydrogen sulphide content 150 kilometres from Shell Canada Energy's Wolverine River dehydration facility in northeastern British Columbia to the NW Wapiti Pipeline valve station No. 2 in Alberta.

The initial supply sources for the $160.7-million, 12-inch pipeline would include shut-in production from existing wells operated by Husky oil Operations and Shell Canada, the two anchor customers, in the Bullmoose area of northeastern B.C. The companies, which have take-or-pay commitments on the line, also will be responsible for constructing addi- I tional facilities that may be required to connect other gas wells to the Wolverine River facility or to the Redwillow Pipeline.

Pending regulatory approvals, construction is scheduled to begin in late 2008 with completion in the third quarter of 2009. This will be followed immediately by pipeline commissioning and, it is hoped, approval for leave to open from the NEB.

SemCAMS Redwillow ULC is a wholly owned subsidiary of SemCAMS ULC, an indirect wholly owned subsidiary of SemGroup, L.P., a private midstream company based in Tulsa, Oklahoma. In 2005 SemCanada, L.P. acquired Central Alberta Midstream [CAMS] from BP Canada Energy Company and Chevron Canada Resources.