Market Snapshot: Gas pipelines fully utilized following record high production in 2022

Release date: 2023-10-25

In 2022, the four key points that export natural gas produced in the Western Canadian Sedimentary Basin (WCSB)^Definition* operated at almost full capacity. This trend is similar to 2021 and other recent years.^Footnote 1 High utilization was driven by increased gas production, which broke a 20-year record and hit a record high in 2022.^Footnote 2

Natural gas supply from Western Canada is transported to markets primarily on three pipelines: the NGTL system, Alliance Pipeline and Westcoast Pipeline. These pipelines either export directly to the U.S. or interconnect with other pipelines that supply natural gas to domestic and export customers (including the TC Canadian Mainline and the Foothills Pipeline). The four key export points are East Gate^Footnote 3 and West Gate^Footnote 4 on the NGTL system and the Canada/U.S. border points on Alliance (Elmore) and Westcoast (Huntington) pipelines (see the Pipeline Profiles for the location of the key points). Upstream James River is also a major point on the NGTL system because much of the gas production must pass through this area to reach downstream markets.

Natural gas pipeline capacity and utilization generally increase in the winter. Capacity increases because the colder weather causes pressure to increase, allowing more gas to run through pipelines. Utilization increases because colder weather increases the demand for space heating.

Figure 1: Monthly throughput and capacity on NGTL system

NGTL capacity increasing incrementally

Capacity on the NGTL System increased incrementally as the 2021 NGTL System Expansion Project was brought online. In late October 2022, the Deep Valley South section of the Project was placed in-service. As a result, the capacity at East Gate increased from 4.39 Bcf/d to 4.95 Bcf/d, and the capacity at Upstream James River increased from 11.64 billion cubic feet per day (Bcf/d) to 12.78 Bcf/d.^Footnote 5 The remainder of the system expansion was placed in-service in late March 2023.^Footnote 6

These capacity increases, and seasonal winter demand, led to an increase in throughput in Q4. At East Gate, throughput increased to 4.55 Bcf/d in Q4, up 3.3% from Q3. At West Gate, throughput increased to 2.77 Bcf/d, up 12.8% from Q3. At Upstream James River, throughput increased by 8.8% from Q3 to Q4 to average 11.54 Bcf/d.

Figure 2: Monthly throughput and capacity on Alliance and Westcoast Pipeline

Regular winter demand on Alliance and Westcoast Pipeline

Throughput at the Alliance Pipeline border key point near Elmore, Saskatchewan, increased by 5.4% in Q4 to an average of 1.63 Bcf/d. This is the highest Q4 throughput since Q4 2010, which averaged 1.64 Bcf/d. Capacity averaged 1.60 Bcf/d in Q4, an increase of 7.7% from Q3.

Winter capacity at the Huntingdon/Fortis BC Lower Mainland key point on the Westcoast Pipeline increased by 6.5% in Q4 to average 1.75 Bcf/d. Throughput averaged 1.59 Bcf/d, an increase of 34% over Q3 due to increased seasonal winter demand.

Every quarter, major companies are required to report daily pipeline throughput^Definition* and available capacity^Definition* data to the CER.^Footnote 7 This data is available quarterly on Open Government, Pipeline Profiles, and A look at pipeline flow and capacity.

Date modified:

2023-11-24