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. And 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].

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 finally be able to send 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 60% by 2040 ^[3], Canadians have an immense opportunity to build more LNG export facilities, diversify our natural gas markets, support national prosperity, and help secure our economic future and independence all at once.

Natural Gas in Canada: Facts

Canada has the ninth-largest proven natural gas reserves worldwide ^[2]
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 comes 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

Similar to oil, Canada’s lack of market diversification has led to a steep discount on the natural gas we sell to the U.S. This equates to about $23 million per day in foregone revenues from Canada’s economy, or about $9 billion annually. This is why Canada needs to develop its liquefied natural gas (LNG) export industry and reduce our reliance on a single customer.

In recent years, the U.S. has increased its own natural gas production considerably, allowing more domestic supply to meet demand and decreasing its own reliance on Canadian imports. In fact, new production from massive shale gas plays like the Marcellus formation has resulted in 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 in the global LNG race. The world's top producers like Australia, Qatar and the U.S. are already a decade ahead of Canada in LNG development and are continuing to move forward with many more new 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 by as much as 60% by 2040 according to the latest industry outlook ^[3].

With our vast natural gas reserves and existing renewable energy infrastructure, Canada has the ability to 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.

LNG is a win-win-win economic opportunity Canadians cannot afford to miss.

Join Us Today!

Global demand for natural gas is projected to increase for decades to come 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 take control of our economic security and independence in the process. 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 provided to us by the natural gas sector. Are you with us?

This isn’t going to happen if we don’t revamp our regulatory framework for major resource projects.

It’s time to secure our prosperity with a new approach that recognizes and supports our energy, mining, forestry, and food workers. pic.twitter.com/YwG8lEwVHk
— Canada Action (@CanadaAction) April 3, 2025

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.reuters.com/business/energy/shell-expects-60-rise-global-lng-demand-by-2040-2025-02-25/}

_{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/}

Natural Gas Industry in Canada

Supporting Canada’s Natural Gas Families