Canadian Operations

Meritage's Canadian affiliate, Meritage Midstream Services III, LP (“Meritage III”) provides oil and gas producers in Western Canada with a full complement of midstream services. Capabilities include the gathering, compression, treating, processing, fractionation, storage, transportation and marketing of natural gas, NGLs and condensate; crude oil gathering, blending, storage, transportation and marketing; and transportation and handling for frac sand and produced water. 

Meritage III entered into definitive agreements with Canadian International Oil Corporation (“CIOC”) to build natural gas gathering, compression and processing assets and crude oil gathering assets to support the development of CIOC’s Montney and Duvernay positions in Northwest Alberta. Meritage III will provide 75 million cubic feet per day (MMcf/d) of gas gathering and processing capacity, which will be expandable to 225 MMcf/d, and up to 10,000 barrels per day (bpd) of crude oil gathering capacity.

The 42-kilometer high-pressure gas gathering system delivers rich gas to the new processing plant located approximately 60 miles south of Grand Prairie, Alberta. The plant offers connections for residue gas to the TransCanada Pipeline and other delivery points. The 37-kilometer crude oil gathering system follows the same route as most of the gas gathering pipeline and connects to Pembina Pipeline Corporation’s Karr Lateral pipeline, which serves Pembina's terminal in the Lator area of northwest Alberta.

The Montney and the Duvernay are poised to become two of the most prolific plays in North America, and CIOC is one of the most prominent and active oil and gas operators in Western Canada. These important agreements establish Meritage's position in the region and allow Meritage to continue to focus on developing the infrastructure needed to stay ahead of the immediate and long-term needs of our Canadian customers.