Market Review of Natural Gas Liquids in Western Canada
Study Released November 08, 2018
Natural gas liquids (NGLs) are an important component of our energy system and have many uses. Without question, they affect a broad range of industries across the economy – locally, regionally, and globally. The relationships across all these energy commodities are complex and intricate, and the outlook for increasing availability of NGLs in Canada points to the existence of various opportunities to expand domestic industries and to diversify and reach new markets. These opportunities will be met with challenges related to required investments in infrastructure, particularly in a low energy price environment. However, understanding those unique opportunities and challenges are the first step to effectively deal with future uncertainty.
The Canadian Energy Research Institute (CERI) conducted qualitative and quantitative analysis to understand how different market factors could foster or constrain Western Canadian NGLs market development. An in-depth analysis of the Western Canadian NGLs market strengths, weaknesses, opportunities, and threats (SWOT), at the industry level, as well as for each commodity was conducted. A large contributing part of the study were interviews with businesses, governments, regulatory agencies and associations which shared their views regarding the further development of the market.