The rapid expansion of the gas production market in North America is not limited to the United States. Canada has recently seen a dramatic increase in its NGL and natural gas production capabilities, as Tidewater Midstream has secured long-term supply contracts at the Brazeau River complex. As concerns are raised regarding oil oversupply in the market in 2026, several nations have implemented measures to allow for increased natural gas and NGL production.
Canada: A challenger to the US, or merely an ambitious and noisy neighbor?
As the United States has become the number one gas producer by capacity in the world, the question for Canada becomes, can the nation effectively compete with the US energy production levels in 2026?
While the efforts by Canadian energy companies have been commendable, the geopolitical power that comes with dominating the energy market is of no interest to the Canadians. Instead, the nation is focusing on establishing a safe and sufficient energy supply chain that is not reliant on imports or outside influence.
A major Canadian midstream company has revealed its long-term energy ambitions
Tidewater Midstream has stated that the company, along with Infrastructure Ltd, has secured long-term contracts for the gas handling, NGL supply, and fracturing at the strategically important Brazeau River Complex.
Under the new contracts, Tidewater can now process upwards of 75MMcf/d of natural gas sourced from dedicated facilities at the Brazeau River Complex. Furthermore, the company has secured the marketing rights for the petrochemicals produced through the processing operations for an initial five-year term. After five years, the contracts may continue on an evergreen basis.
“These are important agreements for Tidewater as they provide significant natural gas volume to the BRC from dedicated facilities on a long-term basis. The BRC processing and fractionation capacity is highly contracted and discussions are ongoing with multiple interested parties to contract the remaining capacity at the BRC.” – Jeremy Baines, Chief Executive Officer of Tidewater
Can Tidewater transform the central Alberta region into the backbone of the Canadian gas market?
Under the new agreements signed, the company will receive natural gas processing and NGL handling fees, which align with the current market rates. The fees are fixed under the new deal’s terms and time frame, subject to annual inflationary increases, of course.
The Brazeau River Complex has become a major energy production area for the Canadian market, and offers a wide range of services to producers, including but not limited to:
- 180 MMcf/d of deep-cut natural gas processing capacity
- NGL and condensate pipeline connections
- approximately 10,000 bbls/d of NGL fractionation capacity
- truck loading and offloading facilities
- physical natural gas storage facilities
- two natural gas transportation connections
As Alberta is pushing for a new oil pipeline in the near future, Canada’s role in the global energy market is shifting. Last year, natural gas production averaged around 19.0 billion cubic feet per day, not as much as its neighbor to the South, but enough to make it a major player in the international gas market.
With the simmering tensions between the US and Canada becoming a reality this year, Canada is aiming to develop a full and stable supply chain to meet the anticipated increase in demand for natural gas.
Major increases in energy production are set to hit North America in 2026
Alongside the rapid expansion of the US energy market, Canada is hoping to increase its natural gas and NGL production levels over the coming years. Gas has become a major decarbonization method for the international energy market and has forced nations around the world to compete for a limited supply. Thankfully, Alberta may see its role as a major energy-producing region shift as the new deals from Tidewater come into effect.
