NuVista Energy Secures 10 Year Transport and Processing Deal

NuVista Energy Ltd. (TSX:NVA) has signed an agreement with SemCAMS ULC for the transportation and processing of 30 MMcf/d of raw gas from its condensate-rich Montney play in Wapiti, Alberta. The agreement features a take-or-pay contract for ten years.

As quoted in the press release:

To provide the capacity, SemCAMS will construct a 34 km x 8-inch diameter pipeline loop of their Northwest Wapiti Pipeline which will expand their existing pipeline capacity by 30 MMcf/d of raw gas. The existing Northwest Wapiti Pipeline and the loop which will be constructed both connect to NuVista’s Elmworth (North) Development Block in which we have continued to experience expanding drilling success and running room. When added to our existing extended SemCAMS contract at Elmworth, this agreement will expand NuVista’s total Elmworth block egress capacity to 47 MMcf/d of raw gas for 10 years. The existing and future expanded volumes flow to the SemCAMS operated Kaybob South 3 (K3) gas plant for processing. The pipeline is expected to be in service in mid 2015.

Click here to read the NuVista Energy Ltd. (TSX:NVA) press release