FIVE KEY TAKEAWAYS FROM MEG ENERGY’S PLANS FOR 2022
- MEG’s Christina Lake SAGD facility is expected to produce 94,000 to 97,000 bbl/day in 2022, about 3% higher than this year.2
Meg Energy Permit Download
Wells Drilled in 2021
Facility Permits Since 2016
- The 2022 capital spending budget is set at $375 million, about $40 million higher than projections for the current year. The sustaining and maintenance capital budget is $310 million, about $265 million of which will be spent on drilling new SAGD and infill wells.3
- About $45 million will be spent on a 30-day maintenance turnaround at Phase 2B, which is currently planned for the second quarter of 2022. Another $50 million is budgeted for optimization work, which will bring Christina Lake’s output closer to its nameplate capacity of 100,000 bbl/day.4
- Two-thirds of MEG’s production will be sold to customers in the US Gulf Coast, shipped through the Flanagan South and Seaway Pipelines, with the remaining barrels sold in Edmonton. The company has also committed to ship 20,000 bbl/day on the new Trans Mountain Expansion Pipeline, once the project is completed.5
- MEG is one of six oil sands producers who have committed to net-zero production by 2050. Beyond continued efforts to reduce steam loads, those targets are largely expected to be met through carbon capture utilization and storage (CCU&S).
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