Canadian Natural Gas Industry Set for Major Growth Spurt

The Canadian natural gas industry is poised for significant growth, driven by rising demand from various sectors. According to Ian Archer, an associate director at S&P Global Energy, a 'wave of demand growth' is on the horizon, led initially by liquefied natural gas (LNG) exports. However, other areas such as data centres and industrial consumption are also expected to drive consumption higher.

Two LNG projects, Woodfibre LNG and Cedar LNG, are currently under construction on the West Coast, while several massive data centres, including Meta's $13-billion facility near Edmonton, are being built. These new developments will require significant amounts of natural gas, potentially increasing demand by 51 billion cubic feet per day over a decade-long period.

TC Energy, which operates gas pipelines across North America, has boosted its natural gas demand forecast by 40%, citing rising LNG exports and power generation as key drivers. The company expects domestic demand growth to increase by 65% during this period, with much of the use tied to meet the additional call for LNG exports off the West Coast.

New oilsands production is also expected to bolster the need for more natural gas, which is used in thermal projects to extract bitumen. If another four large data centres are approved by 2030, it could increase domestic gas consumption in Alberta by half-a-billion cubic feet per day.