Overview

Canada has significant gas reserves estimated at 1.72 trillion cubic metres by the Petroleum Resources Branch of Natural Resources Canada (NRCan). Canada is one of the world's largest gas producers, although far behind Russia and the United States, it vies for third place with Middle Eastern giants Iran and Qatar.

Canada is a net exporter of gas, producing more than its domestic market needs. The country exports gas to the United States via pipeline. It is a key supplier to the US, but volumes have diminished since 2009 as the shale gas revolution occurred. Attention is now focused on developing other export markets, in particular the high value Asian LNG market that Canada is well situated to serve from its Western seaboard.

Production from Canada’s biggest reserve, the Western Canadian Sedimentary Basin, is stagnating as the basin has reached maturity. Canada hopes to use the horizontal drilling techniques that have been so productive in the US on its own unconventional resources. It is highly experienced in unconventional techniques through its extensive production of the oil sands but needs the demand to justify the cost.

Profile first uploaded: 18/10/2012