Modular construction could reshape Canada’s energy future

Standardized, modular designs can cut costs, reduce delays and improve safety across Canada’s oil and gas industry

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In today’s oil and gas sector, engineering, procurement and construction (EPC) firms—companies that design and build industrial facilities from start to finish—face relentless pressure to deliver large capital projects faster, cheaper and with fewer risks. This challenge no longer applies just to simple systems; it now includes massive, multi-million-dollar facilities like natural gas processing plants, liquefied natural gas terminals and oil sands upgraders that have traditionally been custom-built from the ground up.

That model is ripe for disruption.

Cathy Farina, vice-president and co-founder of DyCat Solutions Inc., made a compelling case: productization—the strategic use of standardized, modular designs—can unlock major gains in efficiency, scalability and return on investment. She argued that many companies in the energy sector have only scratched the surface of what productization can achieve.

Productization means designing modular, repeatable components that can be fabricated in controlled environments, then quickly assembled onsite. Think of it as building infrastructure with “Lego blocks” rather than reinventing the wheel for every project. A helpful analogy is the modern homebuilding process: some houses are now constructed using prefabricated wall panels or entire modules, which are built offsite and trucked in for final assembly. The same logic applies to oil and gas facilities—only at a much larger scale.

This approach is already standard practice in industries such as automotive, electronics and consumer products. It reduces complexity, improves consistency and lowers production costs. Yet in oil and gas, many firms still rely on highly customized designs for each new facility, even when they serve similar functions and could share common layouts, equipment and process systems.

Productization transforms how facilities are designed, built and operated. The business case is clear: lower engineering and procurement costs; shorter project timelines by shifting labour offsite; improved safety, quality and ESG performance; greater cost predictability and risk reduction; streamlined global replication; faster commissioning and fewer unplanned outages; and lower lifecycle costs that improve return on investment.

These advantages translate to safer work environments, more efficient construction, stronger investor confidence and more competitive project execution. For companies under pressure to improve margins and deliver consistent results, the benefits are hard to ignore.

Adopting productization, however, is not without challenges. It requires more upfront engineering to develop standardized modules and quality control protocols. It also demands a cultural shift. Some engineers resist standardization, believing custom design is inherently better. Others view it as limiting creativity. Within organizations, long-standing project teams may be reluctant to abandon familiar processes, even if they are inefficient or costly.

“Owners have to accept that some of the facilities may be over-designed, and some may be slightly under-designed,” says Farina. “That’s a small price to pay for the significant benefits of productization.”

While resistance is natural, companies must recognize productization not as a constraint but as a strategic shift that delivers lasting business value. It changes how projects are planned, executed and replicated, offering compounding improvements with each iteration.

As Farina notes, “Ideally, productization benefits increase over time through continuous improvement of the standard design.”

With billions of dollars in energy infrastructure planned across Canada in the coming years—including natural gas, hydrogen, carbon capture and electricity transmission—productization could mean faster delivery, safer job sites and more reliable long-term operations. These are benefits that directly affect local communities, workers and investors alike.

In a sector where delays, cost overruns and safety incidents can derail entire projects, productization offers a smarter, more scalable path forward. The companies that embrace it will be the ones that lead.

Yogi Schulz has over 40 years of information technology experience in various industries. Yogi works extensively in the petroleum industry. He manages projects that arise from changes in business requirements, the need to leverage technology opportunities, and mergers. His specialties include IT strategy, web strategy and project management.