A surge in natural gas inventories helped stabilize heating costs and meet demand through a harsh winter, with federal energy regulators saying record production and storage levels prevented more severe supply strain across the country.The Canada Energy Regulator said households and industry “relied heavily” on gas held in storage, as unusually strong output from western Canada pushed inventories to historic highs heading into the winter season.According to the agency’s Market Snapshot, more than 99% of the gas filling storage facilities was produced in Western Canada, leading to exceptionally high storage levels across the region, where most of Canada’s natural gas inventories are held. In contrast, central and eastern Canada experienced tighter conditions as cold weather drove up demand.The report, titled Canada’s natural gas storage at winter’s end: western surplus, eastern drawdowns, noted that Ontario imported less gas during the coldest stretch of the season, tightening regional supply further. To manage demand, utilities in central and eastern Canada leaned more heavily on withdrawals from storage.Inventories reached a record 1.1 trillion cubic feet on November 7, driven by what analysts described as unprecedented production levels of around 20 billion cubic feet per day. Strong domestic output was identified as the key factor behind the elevated storage levels.By March 31, total storage stood at 684 billion cubic feet, up 4% from the same point last year and still 22% above the five-year average, despite heavy winter consumption in central and eastern regions..Federal estimates also continue to highlight Canada’s long-term supply potential. Officials have said the country holds roughly 1,100 trillion cubic feet of marketable natural gas reserves, enough for an estimated 160 years at current production rates.Erin O’Brien, an assistant deputy natural resources minister, previously told a Senate energy committee that while demand is expected to exceed supply beyond 2030, Canada’s resource base positions the country for major growth in liquefied natural gas development as global demand rises toward an expected 600 million tonnes annually by 2050, up from about 400 million tonnes today.Production remains heavily concentrated in the west, with Alberta accounting for about 60% of annual output, followed by British Columbia at 38% and Saskatchewan at 2%, according to regulator estimates.
