November
2016
HYDROCARBON
ENGINEERING
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access the west coast. To achieve this, Canada must
secure the right federal and provincial permits and
negotiate acceptable terms with many First Nation
communities.
All oil and gas projects need to provide a positive
return on investment (ROI) before a final investment
decision (FID) can be made, so all factors must be
carefully considered and studied before projects are
sanctioned. Once approved, these projects can rely on
Canada’s strong network of engineering support,
fabricators, industry suppliers and contractors.
Conclusion
While Canada may be facing the challenges posed by the
current state of the oil and gas market and the recent
shale boom in the US, there are many opportunities for
Canada to benefit from the situation. Canada has world
class oil and natural gas reserves, a substantial network of
natural gas processing plants and midstream facilities, the
ability to build pipelines through difficult terrain in a
timely fashion, as well as numerous LNG facilities
proposed for both coasts, and positive and interactive
relationships with First Nations, environmental groups and
other stakeholders. Canada is also closer than most LNG
facilities to the large Asian natural gas market, so, while
facing adversity, it is clear to see that the country has
many opportunities to explore.
Note
This article is based on a paper first presented at the GPA
Europe Annual Conference, which was held in Athens on
21 - 23 September 2016. The views expressed in this article
are those of the author and not of UniversalPegasus
International or Huntington Ingalls Industries.
Figure 5.
Canadian natural gas production, demand
and exports (2005 - 2025).
Figure 6.
Global crude oil, LNG and natural gas prices.
Figure 4.
Seven Generations sweet gas plant in northeast Alberta.
and condensates, it must get its resources to the coasts,
where LNG plants need to be constructed to access the
world markets.
The bulk of Canada’s resources straddle the provinces
of British Columbia and Alberta, meaning the resources
must cross from the basins, over the Rocky Mountains, to
