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Meritage Midstream Services Announces Construction of Crude Oil and Natural Gas Infrastructure In Western Canada

August 11, 2015
Meritage Midstream
  • Meritage has entered into agreements with Canadian International Oil Corporation (“CIOC”) to build natural gas gathering, compression and processing assets and a crude oil gathering pipeline to serve CIOC’s production in the Alberta Deep Basin, including the Montney and Duvernay shale plays.

CALGARY, Alberta and DENVER – Meritage Midstream Services (“Meritage”) announced today that its Canadian affiliate, Meritage Midstream Services III, LP (“Meritage III”), has 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 Shale positions in west-central 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.

Construction of both systems began in May. The 42-kilometer high-pressure gas gathering system will deliver rich gas to the new processing plant, which will be located approximately 60 miles south of Grand Prairie, Alberta. The plant is expected to come into service in April 2016 and will offer 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 will connect to Pembina Pipeline Corporation’s Karr Lateral pipeline, which will serve 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 our position in the region and allow us to continue to focus on developing the infrastructure needed to stay ahead of the immediate and long-term needs of our Canadian customers,” said Meritage CEO Steve Huckaby, who also serves as CEO of Meritage III.

“We are excited to be working with Meritage as a well-established midstream service provider for CIOC. Meritage has an outstanding team, and based on their strong ability to execute and provide their customers with the highest level of service in other basins, we have a high degree of confidence in their abilities. They have a track record as business partners and problem solvers who are there to create value for their customers. That approach is very meaningful in any environment, particularly a challenging one,” said CIOC President and CEO Scott Sobie.

About Meritage Midstream Services III, LP
Based in Denver with offices opening soon in Calgary, Meritage Midstream Services 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. The company’s senior management team has more than 250 years of collective experience in the midstream business. Meritage Midstream III is backed by $300 million in equity commitments from funds managed by Riverstone Holdings LLC. Visit www.meritagemidstream.com for more information.

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Media Contact:
Casey Nikoloric
TEN|10 Group
303.433-4397 x 101 o
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casey.nikoloric@ten10group.com