MEG unlikely to spend on oilsands expansion this year after Line 3 delay

Canadian Press | March 4, 2019 | 10:06 am

The CEO of MEG Energy Corp. says a one-year delay in Enbridge Inc.’s Line 3 pipeline replacement project makes it highly unlikely it will approve an option to spend about $75 million to complete an expansion of its Christina Lake oilsands project in northern Alberta.

Derek Evans says about 60 per cent of the $275-million cost of the expansion has already been invested and it will take about a year to bring into production once approved, but there’s no point in doing so if there’s no pipeline capacity to carry the oil to market.