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What is Natural Gas?

Natural gas is a naturally occurring energy source. Natural gas consists primarily of methane, with lesser amounts of (in order of abundance) ethane, propane, butane, pentanes and heavier hydrocarbons. Natural gas also contains non-energy components such as nitrogen, carbon dioxide, hydrogen sulfide and water.

How is natural gas used?Natural gas is an energy source for:

  • electricity generation
  • steam heat production
  • co-generation
  • industrial uses such as processing forest products and heavy oil and manufacturing steel, fertilizers and cement
  • domestic uses such as fuelling furnaces, climate control systems, appliances and vehicles

Where is natural gas found?

Natural gas reserves are found in sedimentary basins throughout the world. They are classified as recoverable, probable, proved and established reserves.

How is natural gas produced? Natural gas is brought to the surface from a reservoir using gas wells regularly spaced to conserve resources. Gathering systems bring it from individual wells to processing plants. Processed natural gas consists almost entirely of methane; however, natural gas in its unprocessed state consists of other components that are removed from the natural gas either at processing facilities at the gas field or at straddle plants located on pipeline systems.

How is natural gas transported? Approximately 95 per cent of Canada’s crude oil and natural gas is transported by pipeline. Canada’s pipeline network totals approximately 540,000 kilometres.

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Other Facts and Figures:

  • Canada is the world’s third largest producer of natural gas with annual production of 6.4 trillion cubic feet (tcf).
  • Around $28 billion worth of all natural gas produced in Canada is exported to the United States. (Statistics Canada)
  • Natural gas is the main source of energy for 51% of the manufacturing sector and 39% of the commercial sector.
  • Natural gas is the source of heating for 48% of Canadian homes.
  • Canadians use 3.2 trillion cubic feet (tcf) of natural gas a year and demand is growing at a rate of over 2% a year.