Natural Gas Sees Surge in Demand as LNG Exports and Data Centres Drive Growth

While Canada's energy industry is dominated by oil production, natural gas is gaining attention for its promising growth prospects. According to Ian Archer, an industry expert and associate director at S&P Global Energy, a wave of demand growth is on the horizon, led by liquefied natural gas (LNG) exports.

Two LNG plants are currently under construction in Canada's West Coast, with several more massive gas export terminals waiting in the wings. The growth of data centres, including Meta's $13-billion facility near Edmonton, will also drive consumption higher.

TC Energy, a Calgary-based company that operates gas pipelines across North America, has boosted its natural gas demand forecast by 40% due to rising LNG exports and power generation. The company expects gas demand in the continent to increase by 51 billion cubic feet (bcf) per day over a decade-long period, ending in 2035.

TC Energy's CEO Francois Poirier stated that 'a growing portion of that gas demand is coming from power generation,' with much of it tied to meet the additional call for LNG exports off the West Coast. In Canada, domestic demand growth is expected to shoot up by 65% during this period.