A report released on Tuesday says the oil and gas pipeline services market in Canada is expected to have a negative compound annual growth rate of 7.9 per cent during 2019-2024.
The Canada Oil & Gas Pipeline Services Market – Growth, Trends, and Forecast (2019 – 2024) by ResearchAndMarkets.com said the oil and gas pipeline infrastructure between the United States and Canada is expected to continue running on full capacities, even though major projects are expected to come online during the forecast period.
“However, there has been a significant increase in the volume, complexity and duplication of regulations imposed on the pipeline industry in Canada, during the last few years. The compounding effect of numerous regulations, along with other factors, is decreasing Canada’s competitiveness worldwide,” it said.
“Multibillion-dollar projects, such as Energy East, Northern Gateway, and the Trans Mountain expansion project are just a few examples that demonstrate the challenges companies face when trying to adapt to new and changing regulation.”
It said the upcoming oil and gas projects, such as Trans Mountain, TransCanada Keystone XL and Enbridge Line 3 replacement project (part of Enbridge mainline) are expected to create tremendous market opportunities in years to come.
“Western Canada is the largest market mainly due to the presence of an extensive network of oil and gas pipeline across the region and beyond the borders to the U.S. refineries. Due to strict government regulations and lack of social acceptance in the region toward crude oil pipeline the market is shifting toward the natural gas pipeline,” said the report.
“Alberta and Quebec are in talks to develop a 750-km pipeline, which will carry natural gas from Alberta, across northern Ontario, and through the Abitibi region to a natural gas liquefaction complex at Port Saguenay.
“The aim is to export 11 million metric ton of LNG per year from Western Canada. The project is worth US$13 billion and is expected to create ample opportunity for pipeline services, such as pre-commissioning and commissioning, and pigging services in the coming years.”