Published on 04/12/2006

The country produced 6.5 Tcf of natural gas in 2003, while consuming 3.2 Tcf. Canada is an important source of the U.S. natural gas supply. During the first 11 months of 2005, it exported some 3.9 Tcf of natural gas to the United States, representing 85 percent of total U.S. natural gas imports during that period.

Canada is one of the world’s largest natural gas producers and exporters

Oil and Gas Journal (OGJ) reports that Canada had 56.6 trillion cubic feet (Tcf) of proven natural gas reserves in January 2006. The country produced 6.5 Tcf of natural gas in 2003, while consuming 3.2 Tcf. Canada is an important source of the U.S. natural gas supply.

During the first 11 months of 2005, it exported some 3.9 Tcf of natural gas to the United States, representing 85 percent of total U.S. natural gas imports during that period. Most Canadian natural gas exports enter the U.S. through pipelines in Idaho, Montana, North Dakota, and Minnesota.

Like the oil industry, Canada’s natural gas production is concentrated in the WCSB, particularly in Alberta. Even though there have been some new conventional natural gas finds in the WCSB, many analysts predict that conventional natural gas production in the WCSB has reached its zenith.

Future natural gas production should center on coal bed methane (CBM) deposits in the WCSB, Arctic frontier natural gas deposits, the Deep Basin area, and natural gas fields off the Atlantic and Pacific coasts.

Natural Gas Offshore Canada

The Scotian Basin, off the coast of Nova Scotia, is the center of natural gas production on the Atlantic coast. The Sable Offshore Energy Project (SOEP), led by ExxonMobil and Shell Canada, began production in 1999. SOEP encompasses numerous offshore fields, with the Alma and South Venture fields the latest brought on-line. SOEP has a production capacity of 400 Mmcf/d of natural gas and 20,000 bbl/d of natural gas liquids (NGLs).

Offshore oil operators in Newfoundland predict that they could also produce sizable natural gas volumes from their reserves. The Hibernia and White Rose fields contain a combined 4 Tcf in recoverable natural gas reserves. Though there is no current natural gas production at either site, both ExxonMobil (Hibernia) and Husky Energy (White Rose) plan to commence natural gas production in the near future.

As mentioned before, the British Columbia government hopes to lift the moratorium on offshore drilling in the Pacific Ocean, giving access to an estimated 43.4 Tcf of total natural gas reserves believed to exist off its coastline.

Artic natural gas reserves

The Mackenzie Delta, located in the Northwest Territories, holds an estimated 5-6 Tcf of recoverable natural gas reserves.

Natural gas from the region could begin flowing to southern markets by 2010, if natural gas companies can complete the Mackenzie Gas Pipeline on schedule (see below).

There are three large, proven natural gas fields in the Mackenzie Delta: Imperial Oil’s Taglu field (3 Tcf); ConocoPhillips’ Parsons Lake field (1.8 Tcf); and the joint Shell Canada-ExxonMobil Niglintgak field (1 Tcf); In 2005, Devon Energy received preliminary environmental approval to begin an exploratory drilling program in the Beaufort Sea, which would be the first such drilling since 1989.

Source: Energy Information Administration