November 02, 2026
The chart shows the natural gas full-cycle cost by component for the Alberta and BC Montney and the Alberta Deep Basin:
- Canadian natural gas full-cycle costs remain among the lowest in North America, with all components of the Canadian full-cycle cost lower than those in U.S. basins.
- The lowest full-cycle cost is in Montney BC South, at approximately USD $1.64/Mcf with liquids uplift. This play has highly productive wells, with an average IP rate of 10.57 MMcf/d. Full-cycle costs in Montney BC North and the Alberta Deep Basin range from USD $2.13/Mcf to USD $2.30/Mcf. The full-cycle cost in Montney Alberta is USD $2.68/Mcf, primarily due to the maturity of some liquids-rich areas within this play.
- The basis differential is relative to AECO and is estimated at $0.22/Mcf for Alberta receipts and $0.44/Mcf for Montney BC.
- The Duvernay is not included in this assessment. Most drilling in the Duvernay is focused on condensate-rich areas, which significantly affects project economics. Without the liquids uplift, the full-cycle cost of Duvernay natural gas is over USD $4/Mcf.
- The liquids uplift in the Duvernay is highly sensitive to gas composition. For example, with a liquids yield of 96 Bbl/MMcf and 1.3% C5+, the uplift would be USD $2.27/MMcf, assuming prices of USD $29/Bbl for C3, USD $41/Bbl for C4, and USD $89/Bbl for C5+. However, if the liquids yield is 150 Bbl/MMcf, the uplift would increase to USD $5.54/MMcf. Different areas of the Duvernay may have significantly different gas compositions; therefore, full-cycle costs can vary considerably across the play.