A worker wearing safety gear and a blue hard hat pours lubricant or hydraulic fluid from a green container into a large, yellow industrial drilling machine. The machinery and the worker’s clothing are covered in reddish-brown mud, indicating a rugged working environment. Image credit: LNG Canada Alliance

Canada’s natural gas is ready to fill the gap as U.S. shale output falters

With American shale production set to decline due to economic pressures, Canada has a unique opportunity to expand its natural gas exports—but a call to action for infrastructure projects like the Sunrise Expansion Program will be key.

Once-plentiful U.S. shale gas, which has long been a cornerstone
of North American energy supply, is now facing significant headwinds. Major producers have
recently warned of declining production, driven by rising costs, lower investment, and depletion
of existing wells. With fewer new wells being drilled, the U.S. shale industry can no longer be
counted on to sustain previous production levels, creating a looming gap in North America’s
energy market.

With a production plateau long predicted before a downward slope to 2050, the emerging
shortfall is positive news for Canada, which is abundant in natural gas resources and
well-positioned geographically and economically to step into the breach. Canada already
exports approximately 8.6 billion cubic feet of natural gas daily to the U.S., but has the reserves
and potential infrastructure capacity to substantially increase this volume.

“As U.S. shale gas enters a period of decline, Canada is poised not just to fill this emerging gap
but also to become a global energy leader,” said Stewart Muir, President & CEO of Resource
Works.

Projects like LNG Canada, set to begin operation in June 2025, will enable Canada to export
gas not just to its traditional U.S. market but also to rapidly growing markets in Asia and Europe.
Muir said that Monday’s announcement in Victoria by B.C. Minister of Energy and Climate
Solutions Adrian Dix, committing to increased provincial support for energy infrastructure
development, is precisely the proactive step needed to support climate action goals, Indigenous
reconciliation and citizen concerns about affordability amid tariff strife.

“Such forward-looking leadership strengthens Canada’s ability to capitalize on our abundant
shale gas resources,” he said. “Now is the time for Canadians to voice their support, ensuring
we seize this rare opportunity to secure our energy future.”

To fully capitalize on these opportunities, Canada must urgently invest in domestic infrastructure
to expand pipeline capacity and accelerate the movement of natural gas to export terminals.

One example of how this is being addressed lies in the pipeline corridor Sunrise expansion
program by Westcoast Energy.

Supporting made-in-Canada solutions

The Sunrise Expansion Program by Westcoast Energy exemplifies precisely the type of
infrastructure Canada needs. This ambitious project involves constructing approximately 137
kilometres of 42-inch diameter natural gas pipeline between Chetwynd, B.C., and the
Canada-U.S. border near Sumas. Enhanced pipeline capacity, new compressor units, and
improved energy transmission infrastructure are critical steps towards maximizing Canada’s
export potential.

However, successful development hinges on active citizen support and regulatory approval. The
Canada Energy Regulator (CER) is currently inviting public comments on the Sunrise
Expansion Program, giving Canadians an opportunity to advocate for infrastructure crucial to
national prosperity and energy security.

To lend your support to this critical infrastructure project, visit the CER’s public comment page
here: CER Public Comment Link.

As U.S. shale gas production declines, Canada stands at a pivotal moment. With timely action
and public support, Canada can leverage its natural gas wealth to become a global energy
leader, securing long-term economic and strategic benefits.

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