Enhancing Alberta’s Natural Gas System

Issue

Alberta’s natural gas system faces persistent challenges that undermine supply chain reliability, industry performance, and investor confidence. Addressing these issues is critical to managing growing system demand and positioning Alberta as a globally competitive industrial investment jurisdiction.

As hydrogen becomes central to achieving net zero goals, the reliability of the natural gas system will be foundational to its success. Strengthening system performance will ensure dependable hydrogen production and support the safe, dependable, and sustainable development of Alberta’s hydrogen economy.

Background

Natural gas is a critical economic driver in Alberta, with more than 60% of Canada’s marketable natural gas produced in the province. According to the Government of Alberta, 83% of natural gas consumed in Alberta is used by industrial, electricity generation, transportation, and other sectors. Natural gas is also a key input for the oil sands and power generation industries. In addition, natural gas is the primary feedstock for hydrogen production, which supports a range of
downstream applications relevant to Alberta, Canada, and global markets. 

Recommendations

The Alberta Chambers of Commerce recommends that the Government of Alberta:

1. Set quality standards for natural gas specifically at the delivery point and create provisions for losses related to the delivery of off-spec natural gas.
2. Ensure timely development of new, and expansion of existing, natural gas supply infrastructure to support growing natural gas demand, attract new projects, and secure further investment in Alberta.
3. Streamline regulation and approval process for critical infrastructure builds, such as pipelines, and;
4. Advance recommendations for hydrogen blending in existing natural gas systems only after pilot studies have been completed to ensure that the blending levels proposed can be managed safely, without adverse reliability impacts, and at a reasonable cost to consumers.