SemGroup at Work on Natural Gas, NGL Plants and Pipelines Across North America

Researched by Industrial Info Resources (Sugar Land, Texas)--SemGroup Corporation (NYSE:SEMG) (Tulsa, Oklahoma) recently received the first ship at its newly completed deepwater dock along the Houston Ship Channel in Texas, and the company is upgrading much of its existing assets to accommodate the growing demand for natural gas products. Industrial Info is tracking more than $780 million worth of active projects involving SemGroup and its subsidiaries, the overwhelming majority of which are related to natural gas and natural gas liquids (NGL).

Click on the image at right for a graph detailing active projects involving SemGroup, by industry sector.

The largest U.S.-based project from SemGroup is the multi-phase conversion of one of the lines in its White Cliff Pipeline System from crude-oil to NGL service. The converted line will move 90,000 barrels per day (BBL/d) of Y-grade NGL from the Denver-Julesburg Basin to Cushing, Oklahoma, and on to Mont Belvieu, Texas, via DCP Midstream Partners LP's (NYSE:DPM) (Denver, Colorado) Southern Hills Pipeline. It is expected to be in service in fourth quarter of 2019. Major components of the 527-mile project include:

• a 25-mile NGL pipeline in Frederick, Colorado, to connect DCP production assets to the White Cliffs line; see project report
• the Colorado portion of the pipeline conversion; see project report
• the Kansas portion of the pipeline conversion; see project report
• the Oklahoma portion of the pipeline conversion; see project report
• a 12-mile NGL pipeline in Cushing, Oklahoma, to connect the White Cliffs line to the Southern Hills Pipeline; see project report

"Crude Transportation [segment]'s second-quarter segment profit was $38 million, compared to $34 million during the previous quarter," said Bob Fitzgerald, the chief financial officer of SemGroup, in a quarterly earnings-related conference call. "The increase was driven primarily by higher White Cliff's Pipeline volumes, which averaged 135,000 barrels per day for the quarter, reflecting the success of our incentive rate structure to attract uncommitted barrels in the basin."

SemGroup also is planning a "pigging" project on the White Cliff Pipeline next year, in which devices known as "pigs" are sent through the system for cleaning, coating and inspection. The five segments are:

• Frederick to Woodrow, Colorado; see project report
• Woodrow to Stratton, Colorado; see project report
• Stratton, Colorado, to Sharon Springs, Kansas; see project report
• Sharon Springs to Harper, Kansas; see project report
• Harper, Kansas, to Cushing, Oklahoma; see project report

The single largest project from SemGroup, in terms of investment value, is set to wrap up by the end of first-quarter 2019: subsidiary SemCAMS' estimated $300 million Wapiti Sour Gas Processing and Condensate Plant in Grande Prairie County, Alberta. The facility will have the capacity to process 200 million standard cubic feet per day of natural gas and 20,000 BBL/d of mixed condensate. SemCAMS also is at work on a $45 million gathering system that will supply more than 280 million standard cubic feet per day to the plant. For more information, see Industrial Info's reports on the plant and gathering system.

"The Wapiti plant is on track for startup in early 2019, which we expect to have fully committed by the end of this year," said Carlin Conner, the chief executive officer of SemGroup, in the conference call.

In addition to the above-mentioned projects, Industrial Info is tracking more than $21 million in active or planned maintenance-related projects from SemGroup and its subsidiaries.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.