Natural gas production growth in the U.S. and Canada could slow down in 2023

Canada and the U.S. reportedly have every chance of setting new natural gas production records in 2023. However, the task could be complicated by declining demand levels, pipeline bottlenecks and a lack of new liquefied natural gas (LNG) exports.

After Russia partially stopped gas supplies to Europe, the demand for gas has soared worldwide. Thus, the U.S. and Canada are expected to become major LNG exporters over the next few years, with prices only going up. For example, in 2022, the combined production of the two countries is 116 billion cubic feet per day. These are record numbers. 

Production growth in 2023 is projected to be slower compared to previous years. Large production fields in both Canada and the U.S. do not have the pipelines needed to transport gas to key markets. There is a Canadian LNG terminal with sufficient export capacity, however, it will not be completed until 2 years from now.