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Updated June 2020

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Highlights

Production: Marketable production of natural gas decreased by 4.2 per cent in 2019 compared with 2018, averaging 288.1 million cubic metres per day (106 m3/d), or 10.2 billion cubic feet per day (Bcf/d). It is projected to decrease 3.8 per cent by 2029 compared to 2019, as production from new wells are not expected to offset declines in production from maturing basins.

Number of wells: The number of wells placed on production in 2019 was 745, a decrease of 17.8 per cent compared with 2018. The drop was mainly because of low prices and capital discipline. This number is expected to grow to approximately 1200 wells by 2029, with most of the growth expected to come from new wells targeting production from the liquids-rich portions of the Upper Mannville, Montney, and Duvernay Formations.

Demand: Alberta demand for natural gas accounted for an estimated 60 per cent of Alberta marketable production in 2019, driven primarily by an increase in demand from commercial and electricity generation sectors. Demand from these sectors is expected to continue to increase over the forecast period.

Natural Gas Composition

Raw natural gas is mostly methane and other hydrocarbon gases. However, it also contains nonhydrocarbons such as nitrogen, carbon dioxide, and hydrogen sulphide (H2S), which are impurities that are later removed. These impurities typically make up less than 10 per cent of raw natural gas. The estimated average composition of the hydrocarbon component without impurities is about 92 per cent methane, 5 per cent ethane, and lesser amounts of propane, butanes, and pentanes plus.

The composition of natural gas varies in Alberta and can range from being dry to liquids-rich gas. Dry gas is mostly methane and can be found in shallow gas pools in southeast Alberta and coalbed methane deposits in central Alberta. Gas with small amounts of extractable liquids is called lean gas, whereas gas with larger amounts is called wet gas. Liquids-rich gas is natural gas with a high amount of liquids. Pools with liquids-rich gas are often found along the Foothills Front region (PSAC Area 2) of Alberta.

Marketable natural gas volumes are either the actual metered volume with the combined heating value of the hydrocarbon components present in the gas (i.e., produced "as is" with in-stream components) or the volume at standard conditions of 37.4 megajoules per cubic metre (MJ/m3).