Natural Gas Industry in Canada

Natural Gas Industry in Canada

Supporting Canada’s Natural Gas Families

Natural gas is one of the fastest-growing energy sources in the world. This highly versatile fossil fuel is critically important in helping meet growing energy demand especially in emerging market economies across the developing world.

But natural gas is also essential for Canadians; as the world’s fifth-largest producer and sixth-largest exporter [1], the fuel accounts for 41% of Canada’s total energy supply, helping to heat homes and power businesses from coast to coast. Canadians are lucky to have this precious resource in abundance, with a recent report ranking our natural gas reserves as the ninth largest globally [2].natural gas infographics banner

Today, Canada sends nearly all of its natural gas exports to the United States. However, with the new LNG Canada facility and other emerging projects, our country will be able to export our energy to other countries abroad – perhaps to those several nations that have been asking for our LNG since 2022.

With global demand projected to grow 65% by 2050 [3], Canadians have an immense opportunity to build more LNG export facilities, diversify our natural gas markets, and help secure a strong and prosperous future.

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Prince George LNG Rally 2020

Natural Gas in Canada: Quick Facts

  • Canada has the ninth-largest proven natural gas reserves worldwide [2]
  • On a non-proven/gas-in-place basis, Canada has the second-largest natural gas reserves globally [6]
  • The oil and gas sector supports 900,000 direct, indirect and induced jobs across the country [4]
  • In 2023, 44% of Canadian natural gas production was exported, 99% of which was sent to the U.S. [1]
  • The value of Canadian natural gas net exports (exports minus imports) was $10.1 billion in 2023 [1]
  • 99% of U.S. natural gas imports and 9% of U.S. consumption come from Canada [1]
  • 97% of Canada’s imports and 17% of Canadian consumption came from the U.S. in 2023 [1]

Canada Must Reach New Markets 

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Canada’s lack of market diversification has led to a steep discount on the natural gas we sell to the U.S., amounting to about $23 million per day in foregone revenue for Canada’s economy, or $9 billion annually [7]. This is why Canada needs to develop its liquefied natural gas (LNG) export industry, find new global markets, and reduce its reliance on a single customer.

In recent years, the U.S. has increased its natural gas production considerably, allowing more domestic supply to meet demand and reducing its reliance on Canadian imports. In fact, new production from massive shale gas plays such as the Marcellus formation has helped increased natural gas imports from the U.S. into eastern Canada [5]. Meanwhile, our southern neighbour is focused on building several export facilities to boost exports faster than we are.

Canadians must start rethinking our natural gas export strategy before we get left behind. The world's top producers, such as Australia, Qatar, and the U.S., are already a decade ahead of Canada in LNG development and will continue to advance additional projects over the next several years to meet growing global demand.

Canadians have an incredible opportunity to provide the world with the natural gas it needs over the coming decades. For example, global demand for LNG is projected to soar 65% by 2050, according to the latest industry outlook [3].

With our vast natural gas reserves and existing renewable energy infrastructure, Canada can build some of the best liquefaction facilities in the world. It's a once-in-a-generation opportunity that will usher in a new era of prosperity for Canadians, advance economic reconciliation with Indigenous communities, and generate public revenues for our governments all at once.

Natural gas development is a win-win-win economic opportunity for all Canadians that, if pursued, can create critical jobs and generate government revenues to pay for the social programs we all rely on.

Join Us Today! 

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Global demand for natural gas is projected to increase over the coming decades as energy demand continues to grow. As one of the few democratic natural gas producers worldwide, Canada needs to find new markets for its energy and, in the process, take control of its economic security and independence. We have an immense opportunity to create billions of dollars in economic activity and government revenues, plus tens of thousands of long-term jobs here at home, while underpinning economic reconciliation with Indigenous communities.

With an increasingly challenging trade relationship with our largest export market and trading partner, Canadians can no longer afford to say "no" to the incredible job-creating, prosperity-generating opportunities offered by the natural gas sector. Are you with us?

SOURCES:

1 - https://energy-information.canada.ca/sites/default/files/2024-10/energy-factbook-2024-2025.pdf

2 - https://financialpost.com/commodities/energy/oil-gas/alberta-major-revision-oil-gas-reserve-estimates

3 - https://www.shell.com/what-we-do/oil-and-natural-gas/liquefied-natural-gas-lng/lng-outlook-2026.html

4 - https://www.capp.ca/en/our-priorities/energy-and-the-canadian-economy/

5 - https://marcellusdrilling.com/2016/07/marcellus-gas-has-major-impact-on-canadian-natgas-importsexports/

6 - https://www.csvmidstream.com/rooted/one-of-canadas-top-economists-says-canada-has-a-window-now-to-rebuild-its-industrial-base/

7 - https://financialpost.com/commodities/energy/natural-gas-albertas-forgotten-commodity-quietly-suffering-through-steep-pricing-discounts

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