Last week Canada-based Suncor Energy announced it has signed an agreement with Tulsa, Okla.-based SEM Group Energy Partners that establishes a new business relationship between Suncor and SGLP for the use of four asphalt specialty production plants in Colorado.
SGLP has two plants in Commerce City, one in Pueblo and one in Grand Junction, and is currently in Chapter 11 bankruptcy.
The agreement allows Suncor the exclusive use of the facilities to store, throughput and process asphalt from its refinery into polymer-modified asphalt cement and asphalt emulsions. Through the use of SGLP’s plants, Suncor will become the primary supplier of these products in Colorado, according to Norb Schreiber, manager of asphalt marketing for Suncor in Denver.
This announcement comes just days after SEM Materials announced it will mothball its Mesa County facility, which currently supplies much of western Colorado and eastern Utah with asphalt and emulsions for road maintenance — a move that had the potential of leaving many road and bridge crews idle.
“This agreement will restore the supply of asphalt in Colorado to historic levels,” said Tom Peterson, executive director of the Colorado Asphalt Paving Association. “By taking over [SGLP’s] assets, it could mean a full supply of asphalt and liquid emulsions for chip seals will be ready and flowing from the former SEM facilities by June 1.”