A new report by Deloitte forecasts a potential increase in Canadian natural gas prices in 2025 due to rising demand and expanding LNG shipping capacity. Factors driving this demand include growing LNG projects in the U.S. and Mexico, increased electricity generation using natural gas, and the anticipated launch of the LNG Canada export terminal.
An oil and gas price forecasting report published by Deloitte on Dec. 31 said an increased demand for Canadian natural gas coupled with growing LNG shipping capacity could translate into higher prices in the new year.Trainees are pictured at Precision Drilling in Nisku, Alta. An increase in production contributed to a slump in natural gas prices in 2024, but with demand projected to increase this year the market could find more balance, according to a new report from Deloitte.
After another year of slumped natural gas markets across North America, a new report says 2025 could bring a jump in prices.published by Deloitte on Dec. 31 said an increased demand for Canadian natural gas coupled with growing LNG shipping capacity could translate into higher prices in the new year. That demand will serve to round out an oversupply of natural gas that Canada saw throughout 2024, said Andrew Botterill, a partner with Deloitte and a co-author of the report, leading to a healthier market balance. And with the new LNG Canada export terminal in B.C. expected to come online mid-2025, Botterill said the industry is in a good position to meet some of those growing needs.'I think companies are really teeing their budgets, being prepared for that opportunity to develop more of their natural gas opportunities.'Botterill said the first main factor driving new demand for Canadian natural gas are markets in the U.S. and Mexico, which will have more LNG projects coming online in the next couple of years. 'That means we're going to have even more LNG exports off North America, so more opportunity for natural gas markets to be developed,' said Botterill, citing the integrated nature of the Canada-U.S.-Mexico market. Continued growth in the use of natural gas for electricity generation across the country is another factor driving demand, said Botterill. Drilling activity in Canada has already seen a dramatic rise. A new project in B.
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