Canadian Natural Gas production
Canada is the world’s fifth largest producer of natural gas and accounts for around five per cent of global production. Natural gas production in Canada is predominantly from the Western Canadian Sedimentary Basin in British Columbia, Alberta, and Saskatchewan, although other gas is produced from offshore Nova Scotia and smaller amounts are produced in Ontario, New Brunswick, and Nunavut. While Canadian production of conventional natural gas has been declining, production of Canadian unconventional natural gas has been rising. Development of unconventional resources like tight gas is technologically challenging and companies are increasingly using horizontal drilling and hydraulic fracturing to create economically viable wells.
Canadian natural gas supply currently exceeds domestic consumption. Canada’s natural gas markets are heavily integrated with those of the United States and Canada exports its surplus natural gas to the U.S. while importing smaller amounts from the U.S. into Central Canada in return. While some companies have proposed exporting natural gas to overseas markets by liquefying it (liquefied natural gas or LNG), any projects that are actually built are not likely to be operational until towards the end of the decade.
The National Energy Board regulates the export and import of natural gas. Export orders or licenses are required to export natural gas from Canada. Holders of export authorizations report monthly on their export activities to the Board.
Analysis and Publications
For more information on Natural Gas, refer to Canada's Energy Future, Canadian Energy Dynamics and Canadian Energy Overview.