Natural Gas Production in Alberta

Alberta is Canada’s powerhouse of natural gas production, accounting for roughly 60% of the country’s total output and playing a critical role in North American energy supply. The province’s vast Western Canadian Sedimentary Basin (WCSB) holds a mix of conventional, tight, shale, and coalbed methane resources that have powered decades of development. In 2025, Alberta’s marketable natural gas production averaged approximately 11.4 billion cubic feet per day (Bcf/d), contributing to a Western Canadian total of around 19 Bcf/d.

This in-depth article covers the key aspects of Alberta’s natural gas industry as of early 2026.

Major Producing Areas and Geological Formations

Alberta’s natural gas is produced across several distinct geological plays within the WCSB:

• Deep Basin / Foothills Front (Northwestern Alberta): One of the most active regions. Tight gas and liquids-rich gas from Cretaceous and Jurassic formations. High activity in the Elmworth-Wapiti and Kakwa areas.
• Montney Formation: Extends from northeastern British Columbia into northwestern Alberta. This Triassic tight/shale play is the dominant growth engine for liquids-rich gas (condensate and NGLs). Alberta’s Montney portion is seeing strong development in the Grande Prairie and Peace River Arch areas.
• Duvernay Shale: Located in central Alberta (Fox Creek, Kaybob, Willesden Green). A liquids-rich shale play with significant associated gas production alongside oil and condensate.
• Cardium, Viking, and Belly River: Conventional and tight sandstone plays in central and southern Alberta. Mature but still producing.
• Coalbed Methane (CBM): Primarily in the Mannville and Horseshoe Canyon coals of central and southern Alberta. Production has declined but remains relevant.
• Foothills / Deep Sour Gas Plays: High-pressure, high-H₂S gas in the southwestern Foothills (e.g., Waterton, Jumping Pound, Crossfield, Okotoks, Ricinus).

The province’s geology transitions from sweet, dry gas in the north to liquids-rich and sour gas in the west and south.

Characteristics of Produced Gas and H₂S Content

Alberta natural gas varies widely in composition:

• Sweet gas (low or no H₂S): Typically methane-rich (85–95%), with varying amounts of ethane, propane, butane, and condensate. Common in the Deep Basin and parts of the Montney.
• Sour gas (contains H₂S): Represents roughly one-third of Alberta’s total production. H₂S content ranges from trace amounts to ultra-sour levels (>30% in rare cases). Average sour gas in the province contains 1–8% H₂S, but some legacy Foothills fields exceed 20–30%.
• Other components: CO₂ (0–5%), nitrogen, and natural gas liquids (NGLs) in liquids-rich plays.

Sour Gas Areas (High H₂S)

• Foothills Front (Waterton, Jumping Pound, Turner Valley legacy fields)
• Crossfield East, Okotoks, Ricinus, and Ricinus West (average >20% H₂S in some pools)
• Parts of the Deep Basin and certain Montney zones in Alberta
• Bearberry area (historically ultra-sour, up to 90% H₂S — now largely depleted)

Sour gas requires specialized processing (amine sweetening and sulphur recovery) and strict safety protocols due to H₂S toxicity.

Field Ages and Development History

• Early fields (1920s–1960s): Turner Valley (discovered 1914) and Jumping Pound were among the first major discoveries. Many Foothills fields are 60–100 years old and now in decline.
• 1970s–1990s boom: Deep Basin and Elmworth-Wapiti development.
• 2000s: Coalbed methane boom in the Mannville coals.
• 2010s–present: Horizontal drilling and hydraulic fracturing unlocked the Montney and Duvernay shale/tight plays. These are the youngest and most active plays.

Wells Drilled and Current Activity

In 2024, approximately 810 new natural gas wells were placed on production in Alberta (98% horizontal, mostly multistage fractured). 2025 activity is higher, driven by LNG Canada Phase 2 ramp-up and strong Montney/Duvernay drilling. Horizontal wells dominate (97%+ of new gas wells).

Major Producers (2025 ranking by gas production)

1. Tourmaline Oil Corp. – Canada’s largest natural gas producer, heavily focused on Montney and Deep Basin.
2. Canadian Natural Resources Limited (CNRL) – Second-largest, with significant Montney, Duvernay, and Deep Basin holdings.
3. ARC Resources – Major Montney player.
4. Ovintiv – Strong Duvernay and Montney position.
5. Cenovus Energy – Significant Deep Basin and liquids-rich gas.

Other notable producers include Peyto Exploration & Development, Whitecap Resources, Spartan Delta, and Surge Energy.

Production Volumes

• 2024: Alberta marketable gas production averaged 11.2 Bcf/d.
• 2025: Alberta ~11.4 Bcf/d (record or near-record levels), contributing to Western Canada’s ~19 Bcf/d total.
• Alberta remains Canada’s largest gas producer (≈60% of national total).

What Happens to the Produced Gas

1. Processing: Raw gas goes to gas plants for removal of H₂S, CO₂, water, and NGL extraction. Sour gas plants recover elemental sulphur as a byproduct.
2. Pipeline transportation: Shipped via Nova Gas Transmission (NGTL) system within Alberta and to export points.
3. Markets and uses:
   • Local Alberta demand: ~62–67% of production (power generation, oil sands operations, petrochemicals, residential/commercial heating).
   • Exports: To British Columbia (for LNG Canada), U.S. Midwest via pipelines, and growing LNG exports from Kitimat (LNG Canada Phase 1 online, Phase 2 ramping in 2025–2026).
   • Petrochemical feedstock: Ethane and other NGLs feed Alberta’s petrochemical industry.

Production Forecasts

According to the Alberta Energy Regulator (AER) ST98 2025 Outlook:

• Marketable gas production expected to grow modestly to 11.7 Bcf/d by 2034.
• Growth driven by Montney, Duvernay, and Foothills Front shale/tight gas, offsetting declines in conventional and CBM.
• Western Canada overall forecast to reach 25+ Bcf/d by early 2030s, supported by LNG export demand.

Conclusion

Alberta’s natural gas industry remains a cornerstone of Canada’s energy economy, evolving from mature conventional and sour fields to world-class Montney and Duvernay shale plays. While challenges such as low prices, infrastructure constraints, and sour gas handling persist, strong LNG export demand and technological improvements position the province for stable-to-growing production through the 2030s.

The sector continues to prioritize safety, environmental performance, and economic contribution — producing the cleanest-burning fossil fuel while supplying reliable energy to North America and the world.

Sources include AER ST98 2025 Outlook, Canada Energy Regulator, CAPP, and industry reports (as of February 2026).