Natural Gas Prices in Alberta Set to Rise in 2025: Here’s How to Prepare

2 days ago
2 min read

Natural Gas Prices Set to Rise in 2025 — Here’s What Alberta

Homeowners Should Know

After a year of low natural gas prices, the tide is turning — and Alberta homeowners should take note.

A new oil and gas forecast by Deloitte suggests natural gas prices could climb sharply in 2025, driven by increased demand and a tightening market. The report highlights a projected Alberta price of $2.15 per gigajoule — nearly double last year’s average.

Here’s what’s happening — and how you can stay ahead of the curve.

🔥 Demand Is Rebounding — Fast

In 2024, Canada saw an oversupply of natural gas, keeping prices low. But that’s changing quickly as global LNG exports ramp up and domestic consumption increases.

Mid-2025 will see the launch of LNG Canada, a new export terminal in B.C. that will allow Canadian producers to ship natural gas to international buyers. This will significantly boost demand and reduce local oversupply.

Meanwhile, the U.S. and Mexico are also expanding their LNG infrastructure — and because our energy markets are closely linked, that opens up even more opportunity for Canadian gas to move.

⚡️Natural Gas Use in Power Generation Is Surging

According to Deloitte, demand for natural gas to generate electricity in Canada has grown by 5% annually over the last 10 years. That trend is expected to continue as the country modernizes its grid and moves toward more electrified systems — meaning natural gas is increasingly essential.

More demand + tighter supply = higher prices.

💰 Investors Are Already Betting on the Future

Deloitte reports a spike in oil and gas investment, with $12.8 billion invested in Q2 2024 alone — the highest since 2017. Most of that money is being funneled into infrastructure, LNG technology, and new production capacity.

The confidence from the investment sector is another strong signal that we’re heading into a higher-price environment.

🃏One Wild Card: U.S. Trade Policy

With Donald Trump poised to return to office, there’s talk of a 25% tariff on Canadian imports, including energy. While the impact isn’t clear yet, such a move could disrupt cross-border trade and add uncertainty to natural gas prices.

✅ What You Can Do Right Now

If you’re still on a floating or regulated natural gas rate, the coming price increases could cost you more over time.

That’s why many Albertans are locking in fixed-rate plans now — before the market catches up.

Get Ahead of the Curve: Lock in Your Rate Today

As an experienced Alberta energy consultant with Xoom Energy, I can help you: