Domestic demand for natural gas to increase: TD Economics

Despite a U.S. natural gas glut, the demand for Canadian natural gas is expected to increase thanks to an expected rise in domestic power needs ...

Despite a U.S. natural gas glut, the demand for Canadian natural gas is expected to increase thanks to an expected rise in domestic power needs and oilsands expansion, TD Economics reports.

 

 

The sudden availability of cheap shale gas in the U.S. means the demand for Canadian natural gas from across the border is falling, TD Economics states in a special report on shale gas.

The lower demand for Canadian gas exports to the U.S. has resulted in Canada producing 16% less gas last year than it did in 2005 – a trend the National Energy Board expects to continue.

The good news is that expansion of the energy-intensive oilsands is expected to increase the demand for natural gas by 30% by 2020. The domestic demand is also expected to grow as more thermal power production comes from natural gas, increasing demand by 33%.

And as gas exports to the U.S. continue to fall, “lower demand from our traditional export market – the U.S. – means there is also the opportunity for producers to realize greater value for their reserves with the prospects for liquefied natural gas exports from B.C. to Asia,” the TD Economics report states.

nbennett@biv.com

@nbennett_biv

comments powered by Disqus

More from Mining & Energy

Panel weighs future of Canada’s National Energy Board

Q&A | Public concerned about NEB’s mandate and about being heard at hearings: review panellist

Read Article

Oil, gas exploration explodes in province’s Peace region

Dramatic turnaround in drilling rekindles industry optimism in northeast B.C.

Read Article

Lax Kw’alaams throw support behind Petronas’ $36b LNG project

Multimillion-dollar agreements signed by Lax Kw’alaams, Metlakatla on Pacific NorthWest LNG pave way for export terminal

Read Article

Gavin Dirom leaving AME to ‘pursue other career opportunities’

Read Article

Northern Dynasty slams short-seller report as class-action suit looms

Rebuttal comes amid investigation over possible false and misleading statements made by the miner about its Pebble copper-gold project

Read Article

Subscribe to our mailing lists

* indicates required

Newsletters

* You can modify your newsletter subscriptions at the bottom of any newsletter you receive.
×