Consultancy McIntosh Perry buys oil specialist Onstream Engineering
Privately-held, national engineering consultancy McIntosh Perry has acquired oil & gas specialist Onstream Engineering. The acquired firm supports industry clients with project services related to facilities and pipelines, among other areas.
Founded in 1990, McIntosh Perry started out as a civil engineering firm servicing Ontario. Since then, the company has expanded through a series of mergers and acquisitions to expand its geographical footprint across Canada, while enlarging its service capabilities. In 2016, the firm merged with engineering firm CCI Group, and then with oil & gas focused engineering consultancy OEL Projects. Notable acquisitions over the years have included William Leung & Associates, Kleinfeldt Consulting Limited, and VVV Engineering.
Today, the company has over a dozen offices across Canada and over 600 engineers. The company provides a full suite of engineering consulting services, serving areas like public infrastructure, oil & gas, building and restoration services, and sustainable community development.
McIntosh Perry has further expanded its oil & gas engineering capabilities in Western Canada with the addition of Calgary-based firm Onstream Engineering. The acquired firm provides an array of engineering services focused on project control – including facilities and pipelines, process engineering, design services, and regulatory approvals.
Recent projects completed by Onstream include small to mid-sized compression and pipeline projects; single well tie-ins; and facility projects like oil treatment, refrigeration, and water disposal.
"Onstream shares our strong focus on client satisfaction, technical expertise and providing high-quality services," commented Gus Sarrouh, CEO, McIntosh Perry. "We are well-positioned in the Oil & Gas market with OEL Projects Ltd., a McIntosh Perry Company, and the addition of Onstream furthers our goal to grow our Oil & Gas Division in Western Canada. We are excited to welcome the talented and experienced team at Onstream to the McIntosh Perry family."
Troubled times
The transaction arrives at a time when the Canadian oil & gas industry is currently in the throes of a crisis, as the country’s pipeline development has failed to keep pace with the industry. As such, Canadian crude is being sold at discount prices to the US (as low as $45 a barrel), due to a lack of infrastructure to send oil to the coast (and to oil-hungry Asia-Pacific countries where it can be sold at a higher price). The lack of pipeline capacity and market access is costing the Canadian economy an estimated $80 million a day, according to the Alberta government.
Over the years, a number of oil pipelines have been proposed. The Northern Gateway and Energy East projects have been scrapped, while Keystone XL and the Trans Mountain expansion remain on hold. The federal government bought the Trans Mountain pipeline from Kinder Morgan for $4.5 billion earlier this year to make sure that its expansion and capacity doubling would occur. However, the project has been stalled since August, when a federal court ruled that regulators failed to adequately consult First Nations along the route, as well as account for the expanded pipeline’s impact on BC killer whales.
