MEG Energy

Title: MEG Energy
Category: Energy
Clicks: 3
Added on: Nov 26, 2011
MEG Energy is a Canada-based oil sands production company with exploration projects in Alberta. The company was established by Steve Turner, David Wizinsky, and Bill McCaffrey in 1999 and in 2010, it went public. The government granted approval for the Christina Lake project in 2008, and it became one of the 6 oil megaprojects in the country. In 2005, the 3rd largest natural gas and oil company in Canada, CNOOC Ltd bought 16.69 percent interest in the company, worth 13.6 million shares.

The company’s oil reserves are found at about 1300 feet (400 meters) below the surface. The reserves are accessed using SAGD technology as to extract oil. This technology allows the company to separate sand and oil underground, eliminating the need to tail ponds.

Within its SAGD operation, MEG Energy makes use of cogeneration, which enables the company to create electricity and bitumen from natural gas. Cogeneration generates electric power characterized by lower greenhouse intensity, and the excess heat from the production of electricity is used to make steam. Power and steam are used for the company’s production operations, and excess electricity is sold to the Alberta grid, resulting in greener power used by Alberta’s consumers of electricity.

Christina Lake is a project in the Athabasca region, which takes place in three phases. Production started in 2008 and 2009 as part of Phases 1 and 2. The pipeline system used for carrying diluents and bitumen oil is owned by Devon ARL Corp and MEG Energy. The company also has 100 percent interest in the Surmont area, which is found close to the Christina Lake Project.

MEG Energy has 50 percent interest in the Access Pipeline, which is a dual pipeline system, connecting Christina Lake to a refining, upgrading, and transportation network on the territory of Edmonton. This area offers access to US west coast and Canadian transportation and refining markets, which are not easily accessible using other pipeline systems.

MEG Energy is listed on the TSX under MEG, and its main competitors are Suncor Energy Inc., Shell Canada Limited, Cenovus Energy Inc., and others.
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