SemGroup Corp plans to build a natural gas processing plant for SemGas LP in the Midcontinent region, the Tulsa, Oklahoma-based company said Tuesday.
SemGroup plans to buy a pre-engineering 60,000 Mcf/day processing plant from Exterran for the project, it said.
The new plant and equipment are needed to meet the growing demand for midstream services in the "Mississippi Zone" play in northern Oklahoma and southern Kansas, the company said.
A spokeswoman for the company, Liz Barclay, said the exact location of the plant had not been decided as yet and that SemGroup was not revealing the cost of the project. An in-service date has also yet to be decided, she said.
Currently, SemGroup has 50,000 Mcf/d of processing capacity, the majority of it in the Mississippi Zone, and its utilization rate at the end of the third quarter was 67%, Barclay said. By the end of 2012, the company expects that rate to be up around 89%, she added.
"SemGroup is focused on capturing the growing demand for midstream services," Norm Szydlowski, CEO of SemGroup, said in a statement. "We are excited about this new opportunity for growth and what it means for our business and shareholders."
