Connecting to Markets
MEG Energy has an active role in connecting our growing production to market demand through a 50% ownership in the Access Pipeline.
Access Pipeline connects MEG’s Christina Lake Project to a upgrading, refining and transportation hub in the Edmonton, Alberta area. From the Edmonton hub, we are able to connect our northern Alberta production base to current and emerging markets in North America and beyond.
At the same time as diluted bitumen is moved to customers on the Access Pipeline, a smaller pipe running in the opposite direction from the Edmonton hub to our Christina Lake facility helps ensure a reliable supply of diluent for blending into our products.
In the third quarter of 2014, MEG completed an expansion of the Access Pipeline, which included the construction of a 42‐inch blend line from the Christina Lake Project to the Edmonton, Alberta area. The expansion of the Access Pipeline will accommodate anticipated increases in production from the Christina Lake Project as well as provide expansion capacity for future production volumes from our Surmont and Growth Property areas.
Building on this flexible “hub and spoke” strategy, MEG’s 900,000 barrel Stonefell storage facility is strategically located near the southern end of the Access Pipeline and is connected to a third party rail‐loading terminal near Bruderheim, Alberta. Stonefell adds significant value by:
- Allowing MEG to blend products to improve the quality and price realization of our exports
- Mitigating the impacts of periodic pipeline restrictions, which can temporarily distort market prices
- Providing the opportunity to acquire and store diluent when market conditions are favourable
Together, the flexibility and connections to multiple markets provided by Access and Stonefell improve our ability to optimize the value of every barrel MEG produces.