DUBLIN--(BUSINESS WIRE)--The "Canada Oil & Gas Pipeline Services Market - Growth, Trends, and Forecast (2019 - 2024)" report has been added to ResearchAndMarkets.com's offering.
The oil & gas pipeline services market in Canada is estimated to witness a negative CAGR of 7.90% during 2019-2024
Oil and gas pipeline infrastructure between the United States and Canada is expected to continue running on full capacities, even though the major projects are expected to come online during the forecast period. Regular maintenance and servicing of the same becomes imperative for a profitable business, which consequently results in driving the demand for pipeline services.
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. Multi-billion dollars 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.
- The midstream sector is the largest market for pipeline services among the different sector. Alberta is the hub of Canadian midstream pipeline systems.
- The upcoming oil and gas projects, such as Trans Mountain Expansion Project, 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 US refineries.
Key Market Trends
Increasing Demand for Repair Services
- Among the service type, repair services accounts for the largest market share, followed by drying and inspection services. Presence of significant network of aging pipelines has been driving the demand for repair services, such as corrosion prevention.
- The repair and maintenance services include hot tapping, repair clamp, strap clamp, leak repair, and pipe lifting and handling services.
- Canada is currently witnessing an increasing demand for natural gas, particularly in the power sector. Any disruption in the gas supply can cause disruption in power generation, which, in turn, can affect gas suppliers, power industry, along with the manufacturing sector, in a region. Therefore, with rising share of gas consumption, the demand for hot tapping from the gas pipeline operators in the region, is expected to grow substantially during the forecast period.
- Other repair and maintenance services are mainly used for repairing or replacing the damaged pipelines. The requirement of these services is generally unplanned. Moreover, the major consumer for these services is the aging pipeline network as the aging pipelines are more prone to unplanned damages. As a significant fraction of the Canadian pipeline infrastructure is quite old, the probability of unplanned servicing requirement is pretty high, which is a positive indicator for the segment of the market being studied.
Western Canada to Dominate the Market
- 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 US 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.
- 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 USD 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.
- Surging crude oil production and limited space for export pipelines have encouraged the producers to sell the crude oil at a record low relative to world benchmark. The Government of Alberta has announced a mandatory province-wide 8.7% production cut to keep the prices from falling further.
- This is expected to allow the WCS prices to recover and encourage the investors in the long run to invest in new projects, and drive the demand for pipeline services in the coming years.
- Furthermore, the Government of Alberta is planning to build a new refinery to process the discounted crude oil, and sell the high value refined product to the international market. This is expected result in demand for the new pipeline project, and in turn, pipeline services.
The Canada oil & gas pipeline services market is fragmented and the key oil & gas pipeline service providers in the market include Baker Hughes a GE Co., Tenaris SA, Tetra Tech Inc., Mistras Group Inc., and Trican Well Services Ltd.
Key Topics Covered:
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
1.4 Study Deliverables
1.5 Research Phases
2 EXECUTIVE SUMMARY
3 RESEARCH METHODOLOGY
4 MARKET OVERVIEW
4.2 Market Size and Demand Forecast in USD million, till 2024
4.3 Crude Oil Historic Trend and Production Forecast, till 2024
4.4 Natural Gas Historic Trend and Production Forecast, till 2024
4.5 Brent Crude Oil and Henry Hub Spot Prices Forecast, till 2024
4.6 Recent Trends and Developments
4.7 Government Policies and Regulations
4.8 Investment Opportunities
4.9 Market Dynamics
4.10 Supply Chain Analysis
5 MARKET SEGMENTATION
5.1 Service Type
5.1.1 Pre-commissioning and Commissioning Services
5.1.2 Pigging and Cleaning Services
188.8.131.52 Intelligent Pigging
184.108.40.206 Caliper Pigging
220.127.116.11 Mechanical Cleaning
5.1.3 Inspection Services (Excluding Pigging)
18.104.22.168 Hydro Testing
22.214.171.124 Other Inspection Services
5.1.4 Flushing and Chemical Cleaning Services
126.96.36.199 Chemical Cleaning
188.8.131.52 Chemical Inhibitors
184.108.40.206 Other Flushing and Chemical Cleaning Services
5.1.5 Drying Services
220.127.116.11 Air Drying
18.104.22.168 Nitrogen Drying (Nitrogen Purging and Nitrogen Fill)
22.214.171.124 Vacuum Drying
5.1.6 Repair Services
126.96.36.199 Hot Tapping
188.8.131.52 Other Repair Services
5.1.7 Decommissioning Services
5.2.1 Eastern Canada
5.2.2 Western Canada
6 COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Key Company Profiles
6.3.1 Baker Hughes a GE Co.
6.3.2 Tenaris SA
6.3.3 Ledcor Group of Companies
6.3.4 Pipeworx Ltd
6.3.5 Stats Group
6.3.6 IKM Gruppen AS
6.3.7 T. D. Williamson Inc.
6.3.8 Tetra Tech Inc.
6.3.9 Mistras Group Inc.
6.3.10 Trican Well Service Ltd
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
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