Updated September 2026
Natural Gas Production
In 2025, production of marketable natural gas was 324.2 million cubic metres per day (106 m3/d), or 11.5 billion cubic feet per day (Bcf/d), representing a 3% increase compared with 2024. Growth was primarily driven by increased production from the Petroleum Services Association of Canada (PSAC) Foothills Front and Northwestern Alberta regions, as well as continued expansion of production from shale gas wells.
Over the next decade, marketable natural gas production is forecast to increase to 379.0 106 m3/d (13.5 Bcf/d), supported by continued development of the Foothills Front and Northwestern Alberta regions, as well as expanding production from shale gas resources. These production gains will likely be partially offset by declines in other areas.
Number of Natural Gas Wells (well legs)
950 natural gas wells were placed on production in Alberta in 2025, an increase by 17% from 2024. Horizontal wells accounted for 98% of the new wells drilled. Rising gas prices and drilling efficiency supported drilling activity mainly in the Montney and Duvernay Formations. The number of new vertical wells placed on production decreased by 6% in 2025 because of better production rates from horizontal wells.
The number of wells placed on production is expected to increase moderately over the forecast period to 1,350 by 2035. The forecast for higher natural gas prices, along with a positive outlook for natural gas demand and export market will support.
Natural Gas Demand and Removals
Alberta’s demand for natural gas was 207.6 106 m3/d (7.4 Bcf/d) in 2025, representing about 64% of marketable gas production. Natural gas demand is expected reach 244.1 106 m3/d (8.7 Bcf/d) by 2035. Demand is projected to grow across the oil sands, electricity generation, transportation, and petrochemical sectors, supported by increased industrial activity, while residential, commercial, and other industrial demand is expected to rise more gradually and may be further influenced by future data centre development.
Natural gas removals from Alberta (i.e., transfers to other provinces and exports to the U.S.) decreased by 2% in 2025, as demand growth outpaced production. Gas removals are estimated to increase over the forecast period, driven by rising natural gas production. The AER calculated that as of December 31, 2025, an additional 3,691 billion cubic metres (131 trillion cubic feet) of natural gas is available for removal permits.
Figures
Figure S5.1 shows the Alberta marketable gas average daily production.
Figure S5.2 shows the Alberta marketable gas average daily production and number of new producing wells.
Figure S5.3 shows the Average daily gas production from bitumen upgrading and bitumen wells.
Figure S5.4 shows the Alberta total purchased, processed, and produced gas by oil sands.
Figure S5.5 shows the Alberta natural gas new wells placed on production and AECO-C price.
Figure S5.7 shows the Alberta marketable gas available for removals and demand by sector.
