Natural gas transportation and distribution

An overview of the Canadian natural gas industry is provided, with a focus on transportation and distribution services and markets. The western Canada basin has the largest established reserves of marketable gas of any North American Basin, an estimated 95 trillion ft3 or 20-25 years of supply at current levels of production. In British Columbia alone, ultimate potential gas reserves are estimated at 38-50 trillion ft3. The basin remains relatively undeveloped and drilling and exploration activities are increasing. Gas supplies are adequate to serve new and existing markets, and output is about evenly split between domestic and export consumption. Growth in demand is expected from increasing residential and commercial use of gas; areas of potential growth include gas-fired cogeneration and increased use of natural gas for powering vehicles. Ongoing expansion of gas delivery infrastructure is enhancing the reliability and efficiency of gas service. In the past 20 years, the length of Canada's transmission pipelines has doubled to over 40,000 miles while distribution lines have tripled to over 100,000 miles. The gas delivery network is managed by computerized systems that allow nearly instant response to changes in demand. Issues that could alter the industry's outlook are discussed in the areas of gas marketing, deregulation, competition, and prices