SemGroup to expand midstream business with new gas plant
Midstream services company SemGroup Corp. and full-service natural gas compression and processing firm Exterran Holdings Inc. announced today the development of a new gas processing plant for SemGroup subsidiary SemGas LP.
SemGas has entered into a letter of intent with Exterran to purchase the new gas processing plant and associated compression equipment. The plant and equipment are needed to meet growing demand for midstream services in the Mississippi gas play.
It is expected that the plant will be designed and fabricated by Exterran to handle a throughput of 60 million cubic feet per day (MMcfd) of gas, and will feature state-of-the-art cryogenic technology for natural gas liquid (NGL) extraction and enhanced ethane recovery.
Exterran offers pre-engineered processing plants in 60-, 150- and 200-MMcfd nominal capacity to meet the performance and delivery needs of contemporary midstream service providers.
"SemGroup is focused on capturing the growing demand for midstream services," noted SemGroup President and CEO Norm Szydlowski. "We are excited about this new opportunity for growth and what it means for our business and shareholders."
"The agreement with Exterran is another step forward in our strategy to become the service provider of choice among active producers in the Mississippi Zone," said Wayne Ziegler, vice president of SemGas. "We believe there is an immediate and growing need for more processing capacity in SemGas' Northern Oklahoma system."
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