Market Snapshot: Canada’s natural gas production kept climbing in 2025

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Release date: 2026-05-20

Canada’s natural gas production continued to grow in 2025, supported by sustained drilling activity, improvements in recovery, and the start of liquefied natural gas (LNG) exports from LNG Canada. Gas production set new monthly and annual records, reaching 20.0 billion cubic feet per day (Bcf/d) in November 2025 and averaging about 19.0 Bcf/d for the year, exceeding the previous annual record of 18.3 Bcf/d set in 2024.

Figure 1: Natural Gas Production by Province and Territory

Source and Text Alternative

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 2021 to December 2025 for Canadian provinces and territories. Saskatchewan production held steady at about 0.3 Bcf/d through 2025. Both Alberta and British Columbia (B.C.) display seasonal swings, typically peaking in late fall and winter due to increased rig activity in those months. In 2025 Alberta gas production averaged 11.3 Bcf/d, and B.C. averaged 7.4 Bcf/d.

  • Provincial contributions: Alberta remained the top-producing province, accounting for 60% of Canada's natural gas production in 2025. British Columbia (B.C.) followed with 39%, while Saskatchewan contributed 1.5% and the rest of CanadaFootnote 1 produced less than 0.1%.
  • Production trends: Natural gas production has been climbing in recent years and increased by 3.8% from 2024 to 2025. In 2025, B.C. had the largest year-over-year provincial increase of 4.8%, followed by Alberta with a 3.5% increase. Strong production growth was driven by robust activity in western Canada, particularly in the Montney Formation across B.C. and Alberta. Saskatchewan production declined by 5.1% in 2025, marking the second consecutive year with declining production.
  • Production drivers: Canadian natural gas production rose in 2025, despite low North American natural gas prices. Producers focused on liquids-rich natural gas, where condensate and other natural gas liquids (NGLs), such as propane and butane, boosted revenues. At the same time, improved drilling efficiency reduced costs and increased well production rates. Expectations of growing LNG demand, particularly from LNG Canada, also supported continued investment and production growth.
  • Launch of LNG Canada: Canada’s first large LNG export terminal, LNG Canada in Kitimat, B.C., began its first LNG exports in June 2025, providing Canadian producers with access to global markets, particularly in Asia, where demand for LNG is growing rapidly. While Canadian natural gas exports to markets in the United States continued to be robustFootnote 2, LNG Canada enables producers to diversify their customer base and marks a significant step in strengthening Canada’s role as a global LNG supplier.
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