Market Snapshot: Canadian natural gas production continues to reach record levels

Release date: 2025-10-01

Following a record setting year in 2023^{Footnote 1}, Canadian production hit new highs in 2024, averaging 18.3 billion cubic feet per day (Bcf/d), continuing the steady growth seen since 2020. Production has been robust from January to May 2025, averaging 19.2 Bcf/d.

Figure 1: Natural Gas Production by Province and Territory

Source: Canada Energy Regulator (CER) and monthly production data from Canadian provinces and territories

Text Alternative: This figure shows monthly natural gas production from January 2000 to May 2025 for Canadian provinces and territories, as well as total Canadian production. Saskatchewan production held steady at about 0.3 Bcf/d through 2024-2025. Both Alberta and BC display seasonal swings, typically peaking in late fall and winter due to increased rig activity. Since November 2024, total monthly production has remained above 19.0 Bcf/d, with Alberta averaging 11.4 Bcf/d, and BC averaging 7.5 Bcf/d.

• Provincial contributions: Alberta (AB) remained the top-producing province, accounting for about 59.7% of Canada's natural gas output in 2024. British Columbia (BC) followed with 38.6%, while Saskatchewan (SK) contributed 1.6%. The rest of Canada produced 0.1%. BC's share of total Canadian production has grown since the shale/tight gas revolution in the mid 2000's, where it was just 17.0% in 2008.
• Growth drivers: In 2024, BC saw the largest year-over-year provincial increase in both percentage and absolute terms (+6.1%, 0.4 Bcf/d), driven by tight gas development. AB's output increased slightly (+0.6%, 0.06 Bcf/d) but remained consistently high. SK production fell by 4.8 % after modest growth (0,5%) in 2023.
• Early 2025: Canadian production was 19.2 Bcf/d in the first five months of 2025. Provincial shares stayed close to 2024 levels: AB - 59.4%, BC - 38.9%, SK - 1.5%, and the rest of Canada - 0.2%.
• Market context: Natural gas production continued to rise in 2024 and during the first five months of 2025, despite persistently low North American gas prices. The supply of supported the economics of Canadian natural gas production, while expanded pipelines and upcoming LNG export capacity further supported record volumes.
• Production trends: Production growth has been driven by expanded development in the Montney Formation in northeastern BC and northwestern AB. Advances in horizontal drilling and hydraulic fracturing have helped sustain high output.
• Launch of LNG Canada: In June 2025, LNG Canada began its first exports. The project will likely source gas from its partners' resources in the Western Canadian Sedimentary Basin, as well as from the broader western Canadian gas market.