As part of the U.S. energy industry’s midstream segment, SemGas provides infrastructure that helps gather gas from the wellhead to the marketplace. The company offers customers natural gas gathering, processing, and storage services.
SemGas’ gathering and processing assets are located in southwestern Kansas, northwestern Oklahoma, eastern Oklahoma and North Texas. The Kansas assets include 407 miles of gathering lines and a nitrogen rejection/helium recovery plant near Offerle, Kansas. The plant is capable of processing 12.5 MMcfd of 600 Btu natural gas.
SemGas currently operates two gathering systems in Oklahoma. The Nash Plant and gathering system in northwest Oklahoma gathers and processes gas through 20 miles of low pressure gathering lines in Garfield, Grant and Alfalfa Counties. The Nash plant is a 40 MMcfd cryogenic processing plant located near Nash, Oklahoma. The Eufaula Pipeline system gathers, dehydrates and compresses gas produced in McIntosh and Hughes Counties, in eastern Oklahoma. The 40-mile gathering system has a 50 MMcfd capacity and delivers into the intrastate market.
SemGas’ Sherman Plant is a 23 MMcfd lean oil processing plant located near Sherman, Texas. More than 300 miles of low pressure gathering lines collect gas across Grayson and Cooke Counties and delivers it to the plant for conditioning, compression and redelivery to the Atmos Pipeline system.
SemGas acquired the New Avoca Gas Storage development project in October 2004 and the Wyckoff Gas Storage development project in February 2005. The company changed the name of the New Avoca project to Cohocton Valley to better reflect its location in Steuben County, New York.
Construction of the Wyckoff facility began in the second quarter of 2006 and will be completed in 2007. The project will convert two depleted reservoirs in the Oriskany sandstone and the Onondaga limestone reef formations to flexible storage service. Wyckoff uniquely features both the characteristics of seasonal storage from the Oriskany formation and the high deliverability, multi-cycle performance capabilities of the Onondaga reef formation. Combined, the reservoirs will provide 6 Bcf of working gas storage, with 250,000 mcfd of initial withdrawal capability.
The Wyckoff project will connect to Tennessee Gas Pipeline’s HC line, National Fuel Gas Supply and Columbia’s Millennium Pipeline. The connection to the Millennium Pipeline, which will deliver gas to the New York City area markets beginning in 2007, is an especially attractive feature of Wyckoff.
Cohocton Valley will consist of six salt reef caverns providing a total of 5 Bcf of working gas storage. The first cavern at Cohocton is expected to be completed and commercially operational in the third quarter of 2008, with the entire project scheduled for completion in 2009.
SemGas’ operations in Oklahoma, Kansas, Texas and New York are positioned to move natural gas into areas of the U. S. where energy supplies are diminishing. The company provides its customers cost-effective means to process natural gas, take advantage of market price swings and benefit from seasonal fluctuations in natural gas demand.
SemGas Assets and Services
- Gathering – Four gathering systems in three states totaling approximately 800 miles of low-pressure gathering lines
- Processing – three processing plants with a combined capacity of 80 MMcfd
- Storage – two storage projects under development that will offer 11 Bcf of storage