Canada’s energy sector turned in a striking performance in March, with surging natural gas production and record-breaking export figures that signal a meaningful shift in the country’s position on the global energy map one no longer defined solely by its relationship with the United States.
According to the latest figures released by Statistics Canada, overall primary energy output climbed to 2.2 million gigajoules in March, a 0.9 per cent rise from the same month a year earlier. While modest on the surface, the number masks a more dramatic story unfolding beneath it.
Natural gas was the standout. Canada produced 775.12 million gigajoules of the fuel in March a 5.6 per cent jump year-over-year driven by outsized gains in British Columbia, up 13.8 per cent, and a more modest 1.2 per cent increase in Alberta. But the bigger headline belongs to exports.
Total natural gas exports rose 7.4 per cent to 339.7 million gigajoules. What makes March particularly notable is where some of that gas went. Statistics Canada flagged that shipments to countries other than the United States reached their highest level since Canada began exporting liquefied natural gas from its Kitimat, British Columbia terminal in July 2025 a facility that has quickly become a cornerstone of the country’s energy diversification ambitions.
The United States remained Canada’s dominant gas customer, absorbing 282.1 million gigajoules in March. Yet even that figure tells a nuanced tale: American purchases fell 10.8 per cent compared to March 2025, suggesting that as Canada builds capacity to reach overseas buyers, the historic dependence on its southern neighbour is beginning, slowly, to loosen.
Crude oil production edged up a slim 0.2 per cent to 26.9 million cubic metres the weakest year-over-year growth in ten months. But production and exports rarely move in lockstep, and March was no exception. Crude exports surged 4.2 per cent to 22.5 million cubic metres, the highest volume recorded since 2016.
Global events played a significant role. Pipeline exports to the United States received a 5.9 per cent boost as oil demand climbed sharply in the wake of the war in Iran, which rattled markets and tightened supply elsewhere. Meanwhile, shipments to non-U.S. destinations jumped 25.4 per cent to 3.4 million cubic metres, adding further evidence that Canadian oil is finding new paths to market.
Rounding out a broadly positive month for Canadian energy, electricity generation rose 2.9 per cent to 58.2 million megawatt hours. Ontario was the primary engine of that gain, posting a remarkable 48.7 per cent increase. Cross-border electricity exports to the United States also jumped sharply up 48.8 per cent to 3.1 million megawatt hours compared with a year ago.
Taken together, the March figures paint a picture of a Canadian energy sector that is producing more, exporting more aggressively, and crucially reaching a more diverse set of buyers. Whether this momentum continues will depend on how quickly export infrastructure expands and how global demand evolves in the months ahead.
