Semgroup

On the heels of a friendly C$600 million ($449 million) natural gas processing takeover in Alberta, Oklahoma-based SemGroup Corp. highlighted a growth plan that drove the deal by starting up an operation in the Canadian province early.

Tulsa-based SemGroup Corp. has teamed up with KKR & Co. to buy into liquids-rich growth spots in Alberta and British Columbia (BC) shales, announcing on Thursday a takeover of the Calgary processing and pipeline firm, Meritage Midstream.

SemGroup Corp. and DCP Midstream LP launched an open season for the proposed Gladiator Pipeline, a converted pipeline that would transport light crude from the Cushing hub in Oklahoma to Houston and give producers in the Midcontinent and the Denver-Julesburg (DJ) Basin access to Gulf Coast markets.

SemGroup Corp., majority owner of the White Cliffs Pipeline, said Monday it would convert part of the system to move natural gas liquids (NGL) from Colorado to the Gulf Coast.

SemGroup Corp. said its midstream subsidiary in Western Canada has agreed with NuVista Energy Ltd. to build a 200 MMcf/d sour gas processing plant in the Montney Shale in Alberta, supported by a 15-year take-or-pay arrangement for most of the plant’s capacity.

Five years after spinning off its crude oil gathering, transportation, storage and marketing assets in several North American shale plays into a master limited partnership (MLP), SemGroup Corp. said it plans to buy back Rose Rock Midstream LP in an all-stock transaction valued at $391 million.

SemGroup Corp. and Exterran Holdings Inc. are developing a gas processing plant for SemGas LP to service growing midstream services demand in the Mississippi play. SemGas has agreed to buy the new gas processing plant and associated compression equipment. It is expected that the plant will be designed and fabricated by Exterran to handle a throughput of 60 MMcf/d and will feature cryogenic technology for natural gas liquid extraction and enhanced ethane recovery. Exterran offers pre-engineered processing plants in quantities of 60, 150 and 200 MMcf/d nominal capacity.