Canadian oil sands producer MEG Energy Corp. reported a bigger-than-expected quarterly loss on March 7, as the company sold its bitumen crude at lower prices because of transportation bottlenecks.
Alberta oil producers have endured record discounts on benchmark Canadian heavy crude because of congestion on export pipelines that led to a glut of crude building up in storage tanks.
MEG, whose key operations are in the Athabasca oil sands region in Alberta, said bitumen production fell to 87,582 barrels per day (bbl/d) in the fourth quarter from 90,228 bbl/d a year earlier, while average realized prices for bitumen fell to C$13.90 per barrel from C$48.30.
Bitumen is a low-grade crude oil which is composed of complex, heavy hydrocarbons.
MEG estimates rail volumes to average 20,000 bbl/d in the first quarter, increasing to 30,000 bbl/d by the third quarter of 2019.
Adjusting for certain one-time items, the company posted a loss of 40 Canadian cents per share against expectations of a loss of 24 Canadian cents, according to IBES data from Refinitiv. (US$1 = C$1.34)
Interim crude service utilizing the 24” EPIC Y-Grade pipeline from Crane to Robstown, TX, began delivering crude to several terminals in the Corpus Christi area.
EQM Midstream Partners LP has told U.S. federal regulators the company would stop some work on its long-delayed Mountain Valley natural gas pipeline from West Virginia to Virginia as the U.S. Fish and Wildlife Service reviews a couple of permits.
New projects will total $170 in improvements to Pasadena and Galena Park terminals.