SemGroup® Corporation today announced it intends to construct a natural gas pipeline to connect its processing complex in northern Oklahoma to the active STACK play in the central portion of the state.
The Canton Pipeline is backed by firm commitments from an investment-grade counterparty and has an initial capacity of 200 million cubic feet per day. With additional compression, the pipeline could be expanded up to 400 million cubic feet per day to serve other producers in the area.
The 24-inch-diameter natural gas pipeline will extend approximately 50 miles from Semigroup’s Rose Valley processing facility in Woods County to north central Blaine County. The pipeline is expected to be operational by year-end 2017.
“This project falls directly in line with our long-term strategic goals to achieve basin and customer diversification while optimizing our existing assets,” said Wayne Ziegler, vice president of SemGroup’s gas operations. “It significantly expands our Oklahoma asset footprint and allows us to better serve the growing gathering and processing needs within this active play.”
Additionally, SemGroup’s jointly-owned Glass Mountain Pipeline, LLC is constructing a 44-mile pipeline extension to deliver STACK crude to the Cushing storage complex with access to Mid-Continent and Gulf Coast refineries. The Glass Mountain Pipeline extension is expected to be in service in the fourth quarter of 2017.