Market Snapshot: Western Canada’s natural gas export pipelines continued to see high utilization in 2023
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Release date: 2024-07-24
Pipelines that export natural gasDefinition* produced in the Western Canadian Sedimentary Basin (WCSB)Definition* continued to operate at almost full capacity at major export points in 2023. High utilization ratesDefinition* were again driven by record high gas production levels.Footnote 1
Natural gas supply from western Canada is transported primarily through three key pipelines: the NGTL system, Alliance Pipeline, and Westcoast Pipeline. These pipelines either export directly to the United States (U.S.) or interconnect with other pipelines, which supply natural gas to both domestic and export customers. Key export points include East GateFootnote 2 and West GateFootnote 3 on the NGTL system, and the Canada/U.S. border points on Alliance (Elmore) and Westcoast (Huntington) pipelines (see the Pipeline Profiles for precise locations of these key points). Additionally, Upstream James River is also a major point on the NGTL system, as a large portion of gas production must pass through this area to reach downstream markets.Natural gas pipeline available capacityDefinition* and utilization generally increases in the winter. Colder temperatures cause pressure to increase, allowing more gas to flow through pipelines. At the same time, the increased demand for space heating fuel during colder weather drives increased pipeline utilization. Seasonal increases in natural gas production in western Canada also occur in the colder months with higher levels of rig activity, as well as storage withdrawals, increasing supply available to be transported.
Figure 1: Monthly throughput and available capacity on the NGTL system
Source and Description
Source: CER – Pipeline Throughput and Capacity Data
Description: These combined area and line charts illustrate monthly throughput and available capacity on the NGTL natural gas system at East Gate, West Gate, and Upstream James River from January 2019 to December 2023. Available capacity on NGTL had been increasing incrementally in the last three years. Additionally, available capacity and utilization increase in the winter. See the NGTL Pipeline Profile for the location of the key points.
Note: At times, throughput can exceed reported available capacity because of changes that occur between the time available capacity was reported and when shipments occur (due to factors like: ambient temperatures, unplanned outages, and downstream constraints).
NGTL available capacity continued to increase at West Gate and Upstream James River
ThroughputDefinition* at the Upstream of James River key point increased by 2.3% year over year, averaging 11.80 billion cubic feet per day (Bcf/d) in Q4 2023, up from 11.54 Bcf/d in Q4 2022. The available capacity at Upstream James River increased to 13.27 Bcf/d in December 2023.
Throughput at the West Gate key point decreased by 5.3% year over year, averaging 2.54 Bcf/d in Q4 2023 up from 2.68 Bcf/d in Q4 2022. The available capacity at West Gate key point increased to 3.10 Bcf/d in December 2023.
Throughput at the East Gate key point increased by 3.9% year over year, to an average of 4.72 Bcf/d in Q4 2023 up from 4.55 Bcf/d in Q4 2022. The available capacity at East Gate key point increased to 5.04 Bcf/d in December 2023.
Available capacity has been increasing incrementally on NGTL at key points for the last several years. West Path Delivery Program’s projects such as the Foothills Zone 8 West Path Delivery 2023 ProjectFootnote 4 and NGTL West Path Delivery 2023 ProjectFootnote 5 came into service in Q4 2023. These capacity increases, and seasonal increases in winter demand and production enabled higher throughput in Q4 at West Gate and Upstream James River key points.
Figure 2: Monthly throughput and available capacity on Alliance and Westcoast Pipelines
Source and Description
Source: CER – Pipeline Throughput and Capacity Data
Description: These combined area and line charts illustrate natural gas monthly throughput and available capacity on the Alliance Pipeline at the Border key point near Elmore, Saskatchewan, and the Westcoast Pipeline at the Huntingdon/Fortis BC Lower Mainland key point from January 2019 to December 2023. In 2023, both pipelines saw seasonal available capacity and utilization increases in the winter. See the Alliance and Westcoast Pipeline Profiles for the location of the key points.
Note: At times, throughput can exceed reported available capacity because of changes that occur between the time available capacity was reported and when shipments occur (due to factors like: ambient temperatures, unplanned outages, and downstream constraints).
Alliance and Westcoast Pipelines experience typical demand levels during the winter season
The Alliance Pipeline transports liquids-richDefinition* natural gas to the Chicago area. Alliance’s throughput at the border key point near Elmore, Saskatchewan decreased by 4.2% year over year, to an average of 1.56 Bcf/d in Q4 2023 from 1.63 Bcf/d in Q4 2022. The Alliance Pipeline had an average available capacity of 1.61 Bcf/d in 2023.
The Westcoast Transmission System transports natural gas production to consumers in British Columbia as well as to other provinces and the U.S. through interconnecting pipelines. Westcoast’s throughput at the Huntingdon/FortisBC Lower Mainland key point increased by 5.6% year over year, to an average of 1.68 Bcf/d in Q4 2023 up from 1.59 Bcf/d in Q4 2022. The Westcoast Pipeline Huntingdon/FortisBC Lower Mainland key point had an average available capacity of 1.71 Bcf/d in 2023.
Every quarter, major companies are required to report daily pipeline throughput and available capacity data to the CERFootnote 6. This data is available quarterly on Open Government, Pipeline Profiles, and A look at pipeline flow and capacity.
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