Canadian natural gas
innovating growth

Industry Partners

About Natural Gas

Canada has the 10th largest proven reserves* of natural gas. The Canadian industry estimates that, as of 2024, the country has reserves of 1,368 trillion cubic feet (Tcf), which would satisfy close to 300 years of demand at current consumption levels.

The producers rely on transmission systems to move their product to markets. Distribution utilities then deliver natural gas to residences, businesses and other institutions, and industrial operations.

In 2024, Canada exported 8.8 billion cubic feet per day (Bcf/d) of natural gas. It also imported 2.6 Bcf/d. The trade reflects the industry’s ability to service North American markets from the most convenient source. In 2025, the first dedicated Liquefied Natural Gas (LNG) export terminal began operations in Canada. Other terminals are either in the planning or early construction phases. The capacity to export LNG allows Canadian producers to develop new markets and take advantage of more competitive pricing.

In 2022, members of the Canadian Gas Association, which represents the major Canadian natural gas distributors, invested $2.3 billion (latest data available) on both new capital projects and operations and maintenance of existing equipment. The investment served to meet new demand and maintain the safety, reliability, and environmental protection of the industry’s extensive distribution systems.

Today, industry delivers natural gas to over seven million customer locations in Canada through 573,000 kilometres of transmission and distribution pipelines and associated storage facilities. An estimated two-thirds of Canadians benefit from natural gas. Canadians use it to heat their homes, businesses, schools and other public institutions. They also use it to generate electricity, fuel vehicles, and power industrial equipment. It is a versatile, reliable, affordable, and low-emission energy source.

*Technically recoverable and marketable. Reserves are a subset of resources. The latter refer to the volumes of natural gas estimated to be within the reservoirs known and inferred from geological data.

Statistics

  • The International Energy Agency forecasts global natural gas’s share of energy use will increase to 43 percent by 2040
  • As of 2024, Canada is estimated to have 1,368 trillion cubic feet of natural gas reserves, an amount that would supply almost 300 years of current annual demand
  • Natural gas meets 37 percent of Canadians' total energy needs

Innovation

In addition to investments in improving conventional natural gas extraction, other participants in the gas value stream are innovating to further reduce the emissions impact of an already relatively low-emission, critical energy source.

Distribution utilities are working to easily integrate renewable natural gas (RNG) into the gas stream. RNG is recovered from local organic waste. Sources include landfills, wastewater, and agriculture. Its production involves the capture of methane that would otherwise be released through natural processes directly into the environment.

The Canadian Gas Association reports that by the end of 2023 there were 27 RNG projects underway. Canada’s RNG production capacity is expected to reach nearly 30 million gigajoules (GJ), or 27,500 cubic feet, by mid-decade, reducing emissions by over 1.5 million tonnes annually, the equivalent of taking 357,000 passenger cars off the road.

The industry is also exploring ways to use its existing infrastructure to transport and distribute hydrogen, a highly desirable energy source. Hydrogen can be produced from natural gas. It can also be blended into the gas stream. This increases the stream’s energy content and lowers emissions because the combustion of hydrogen produces only heat and water. As hydrogen’s use grows producers can use the existing natural gas infrastructure to bring it to market.

Environmental, Social, and Governance (ESG)

Natural gas utilities have reduced greenhouse gas emissions from their distribution systems by over 20 per cent since 2000. At the same time, the industry added over a million new customers and thousands of kilometres of distribution lines.

Since 2013, Canada’s natural gas companies have invested over $1 billion in energy efficiency. This reduced gas consumption by over 30.3 Bcf (approximately 1/3 of annual Canadian consumption) and cut greenhouse gas emissions by over 1.8 million tonnes of CO2 equivalent.

Canadian communities want more natural gas. This is especially true for remote northern and Indigenous communities, where energy prices are high and energy systems can be less resilient. The natural gas industry has made engagement with Indigenous communities a priority, from extraction to end-use.