The Financial Post reports in its Wednesday edition that two major Canadian natural gas producers announced growth plans this week, confident about the sector's future despite Western Canadian gas prices being "well below" supply costs. The Post's Meghan Potkins writes that Tourmaline Oil, Canada's largest gas producer, plans to increase production by 30 per cent by 2031, echoing predictions from TC Energy that demand for natural gas across North America will accelerate in the next decade, even as prices remain near 40-year lows. "We will be a materially larger, more profitable company right about the time that we expect the continent to be getting short on resource," Tourmaline head Mike Rose said Wednesday, outlining plans for an initial $350-million spend in British Columbia's Montney shale gas region.
"We can slow down if prices aren't co-operating, or we can accelerate if prices are ahead of what we're expecting," Mr. Rose said, adding, "That doesn't seem to happen very often." Rival ARC Resources is increasing its capital spending and accelerating growth plans for its Attachie project in B.C. However, ARC has decided to shut in all of its dry gas production, totalling about 60,000 boe/d, until prices improve.
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