Growing Export Capacity Drives Canada's Oil, Gas Project Starts

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

Canada's oil and gas producers aren't letting trade disputes with the U.S. slow their roll, as ARC Resources, Whitecap Resources, Baytex and other companies prepare to expand their assets in the current quarter.

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Exports Offer New Paths for Gas Developers

As Canada seeks new customers for its oil and gas output amid ongoing trade disputes with the U.S., several fossil-fuel producers are beginning work on extraction and processing projects in some of Canada's biggest resource hotspots. Industrial Info is tracking more than US$11 billion worth of active and proposed projects in Canada's Oil & Gas Production Industry that are set to begin construction before the end of March, more than 85% of which is attributed to projects in Alberta.

Canadian natural gas producers have been looking outside North America for customers, and they are picking up support from liquefied natural gas (LNG) processing and export facilities under development on the West Coast. Last year, the LNG Canada complex in Kitimat, British Columbia, began exporting is product to Asian markets, significantly cutting shipping times, and the Cedar LNG complex in Kitimat began construction.

These exports will be necessary to offset the effects of softening natural gas exports to the U.S., which have been declining amid tariff-related conflicts with U.S. President Donald Trump's administration. For more information, see January 12, 2026, article - Canadian Gas Exports to U.S. Declining, and December 17, 2025, article - Canada's LNG Gets Further Support.

Exploration and production (E&P) company ARC Resources Limited (Calgary, Alberta) is preparing to kick off a series of gas-drilling programs across Alberta that will run through the end of the year. They include an expansion in the Lator Field near Grande Cache, which will involve drilling at least 22 new wells, and an expansion in the Nest 1 and Nest 2 fields near Grande Prairie, which will involve drilling at least 23 and 40 new wells, respectively.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Plant and Project databases can learn more about these projects--including capacities, investment values and necessary equipment--from detailed reports on the Lator, Nest 1 and Nest 2 developments.

On the processing side, Tourmaline Oil Corporation (Calgary, Alberta) is preparing to begin work on a third train at its Aitken Creek North Gas-Processing Plant in Fort Saint John, British Columbia, which will expand inlet capacity from 210 million to 360 million standard cubic feet per day, resulting in 16,000 barrels per day (BBL/d) of natural gas liquids (NGL) production. Feedstock is sourced from the North Montney Shale. Subscribers can learn more from a plant profile and detailed project report.

By the Numbers

• More than US$11 billion: Total value of Canadian oil and gas production projects set to begin construction this quarter
• 85: Potential number of new wells at three of ARC Resources' assets in Alberta
• 16,000 BBL/d: NGL production expected from Tourmaline's expansion to its Aitken Creek North Gas-Processing Plant

Canada Well-Positioned for Low-Price Oil Outlook

Following Trump's push to broaden the U.S. role in Venezuela's oil industry, Alberta's leadership urged Canadian Prime Minister Mark Carney to put more emphasis on trade expansion plans. But any benefits for the U.S. from its actions in Venezuela is a long way off, given the security risks and massive investment involved in furthering Venezuela's oil development, and Canada's oil industry seems better prepared than its southern neighbors to withstand a lower-for-longer price cycle.

For more information, see December 19, 2025, article - Canadian Energy Sector Mood Up, U.S. Down, and January 13, 2026, article - Alberta Worried about Venezuelan Oil Competition.

Among the oil E&P companies preparing for kickoffs in Alberta is CSV Midstream Solutions Corporation (Calgary), which aims to expand production from its holdings in the Karr Field in the Grande Prairie area. In addition to drilling up to 45 new wells, CSV expects to finish and tie-in leftover wells from 2025 to a nearby gas-processing plant. Subscribers can learn more from a detailed project report.

While Alberta predictably dominates Canada's oil E&P investment, Saskatchewan is picking up business from Whitecap Resources Incorporated (Calgary), which plans to drill up to 40 new wells at its assets in the Flat Lake Field, as well as convert some existing wells to water injection, and Baytex Energy Corporation (Calgary), which plans to drill up to 100 new wells at its assets in the Viking Field. Subscribers can learn more from detailed reports on the Flat Lake and Viking projects.

Last year, Baytex went a step further in reducing its exposure to the U.S. oil market when it agreed to sell its U.S. Eagle Ford assets to an undisclosed buyer for US$2.305 billion. For more information, see November 13, 2025, article - Baytex Leaves U.S. as Eagle Ford Proves Too Costly.

Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for active and proposed projects in Canada's Oil & Gas Production Industry that are set to begin construction before the end of March.

Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Key Takeaways

• Expanding export facilities for its oil and gas production means Canada likely won't depend as much on the U.S. in the future.
• Some leaders in Alberta are pushing Carney to further develop exports after the U.S. ousting of Nicholas Maduro in Venezuela.
• But Canada is better able to handle a weak-price outlook for oil than the U.S. or most other oil exporters.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resource's Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR News Intelligence) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 250,000 current and future projects worth $30.2 trillion (USD).