LNG Development A Lifeline For Canada’s Oil And Gas Supply Chain: New Report
Declines in capital investment in Canada’s oil and gas industry, combined with technological changes, have had a negative impact on the oil and gas supply chain since the oil price collapse in late 2014.
Opportunities for EPC companies have diminished as oilsands construction has wound down. Opportunities for oilfield services companies have also disappeared as U.S. shale gas production has taken market share, resulting in less exploration and development spending in Canada.
The development of a liquefied natural gas (LNG) export industry promises to reverse this trend, creating opportunities across the supply chain to put companies back to work or expand operations, finds a newly released report, LNG: Canada’s Supply Chain Opportunities.
This is the fourth special report on the theme of Canada and the Natural Gas Economy that JWN Energy’s Daily Oil Bulletin and Evaluate Energy has produced in collaboration with the Canadian Society for Unconventional Resources.
The first report, LNG: Canada’s Global Market Opportunity, examined how Canadian gas supplies can help meet burgeoning market demand and offer a transformative opportunity for struggling producers. The second, Canada’s Green LNG Advantage, looked at the country’s unique “green” advantages, and how Canadian projects can leverage abundant renewable energy resources to produce the world’s lowest greenhouse gas-emitting LNG.
The third report, Building Trust: Canadian LNG Developers & First Nations, showed how companies that have succeeded in moving their projects forward spent considerable time and resources on First Nations consultation and engagement.
The new report looks at why many companies in the supply chain see the development of LNG facilities as key to their survival and future growth.
There are also potential spinoff opportunities as increased demand for natural gas drives NGL production that could feed new petrochemical facilities.
In addition, an emerging domestic LNG industry is building momentum, providing opportunities for increased upstream activity and the development of a downstream distributed supply chain to power remote communities, remote industrial operations, and marine and heavy duty transport vehicles.
The report examines how Canadian LNG facilities — as they move forward — are expected to generate opportunities in construction and operations, new pipeline and midstream construction and operations, as well as in upstream exploration and development.
Spinoff opportunities in new petrochemical facilities, and in an emerging domestic distributed supply chain serving remote communities, industrial operations and transportation with LNG;
The potential for LNG development to be a major driver of jobs in B.C., and even more so in Alberta; and,
The benefits of integrating Indigenous communities into the LNG supply chain.
Click here to access the full report.