OIL & GAS

Ethane, propane & NGL feedstocks

Alberta's natural gas liquids are the feedstock for the largest petrochemical build-out in Canadian history.

Ethane (246 kbbl/d) and propane (273 kbbl/d) extracted from liquids-rich Montney, Duvernay and Deep Basin gas feed the Joffre and Fort Saskatchewan crackers and the Heartland propane dehydrogenation complex. Dow's Path2Zero cracker (first phase late 2029) needs about 120 kbbl/d of new ethane, which is why deep-cut capacity and ethane recovery are the growth story.

POTENTIAL & KNOWN RESERVES IN ALBERTA

NGLs ride on 136 Tcf proved gas plus 3.8 Bbbl Montney/Duvernay condensate

Confidence: Measured

Where it occurs

  • Montney liquids-rich trend
  • Duvernay Kaybob
  • Deep Basin
  • Straddle plants at Empress, Cochrane, Wolf NGL North

Live Atlas valuation (reference scenario)

1 subsurface asset priced by the Atlas engine: economic value $74B. Move the Scenario Laboratory sliders on the map to reprice.

  • Montney (Alberta side)390K Bcf in place · recoverable $81B · economic $74B (91% clears break-even)

GEOLOGY: WHAT MAKES A DEPOSIT MORE LIKELY

Ethane and propane are co-produced from wet gas and recovered at deep-cut plants; richness follows thermal maturity and reservoir pressure.

Host formations
Montney · Duvernay · Spirit River
Depth range
2K–4K m

Favourable conditions

  • Raw gas with 5–10 % ethane
  • Access to deep-cut extraction and ethane pipelines (AEGS)
  • Condensate windows that fund the drilling

Prospectivity envelopes on the map (0)

No envelope drawn yet — this commodity is screened through datasets rather than a regional polygon.

DATASETS THAT TEST THE TARGET

Stack these layers on the integrated map

Discriminating datasets first, then every catalogued public dataset tagged to this commodity. Verified endpoints draw directly; link-only entries open the publisher page.

  • 3D Provincial Geological Framework: Precambrian subcrop zonesAlberta Geological Survey · Structure, depth & isopach · drawable · verifiedEntry point to the provincial 3D framework: which Paleozoic zone sits on basement controls helium traps, brine aquifers and storage seals.Source ↗
  • Active producing wells (Alberta Energy Geoview)Alberta Energy and Minerals · Wells · link only · verifiedWhere hydrocarbons are flowing today: live reservoir pressure, produced-water (brine) access, helium-bearing gas streams and infrastructure for re-entry.Source ↗
  • Petroleum & natural gas agreementsAlberta Energy and Minerals · Mineral tenure · drawable · verifiedWho holds the hydrocarbon (and helium) rights; open Crown land shows where a posting is possible.Source ↗
All 7 tagged datasets
  • Bedrock geology polygons (DIG 2013-0018, queryable)Alberta Geological Survey · Bedrock geology · drawableSource ↗
  • AGS prospective areas for mineral explorationAlberta Geological Survey · Mineral occurrences · drawableSource ↗
  • NRCan Map 900A: producing mines, mineral areas, oil & gas fieldsNatural Resources Canada · Mines & operations · drawableSource ↗
  • Non-Crown mineral ownershipAlberta Energy and Minerals · Land constraints · drawableSource ↗
  • Parks & protected areas (by designation)Alberta Forestry, Parks and Tourism · Land constraints · drawableSource ↗
  • First Nations reserves & Métis settlementsGovernment of Alberta · Land constraints · drawableSource ↗
  • Alberta Township System gridAlberta Energy and Minerals · Grid & base · drawableSource ↗

VALUE & VALUE CHAIN

Edmonton propane: Discount to Conway and Asian benchmarks

Ethane priced off AECO plus an extraction premium; a 2026 quote could not be verified

EIA — Canadian propane ↗

Gas-linked in the Atlas; downstream polymer margins set the extraction premium.

Value chain

  1. Wet gas
  2. Deep-cut extraction
  3. AEGS ethane pipeline / propane rail & pipeline
  4. Crackers, PDH, export terminals

Industries and products that rely on it

IndustryProductsAlberta capacityGrowth
PolyethyleneHDPE / LLDPENOVA Joffre, Dow Fort Saskatchewan; Dow Path2Zero 1,285 kt/yr ethylene + PE (Ph1 late 2029, C$10–11.5 B)Strong growthAlberta ethane demand to 288 kbbl/d by 2034 ↗
PolypropylenePP resinInter Pipeline Heartland PDH/PP 525 kt/yr (since 2022)GrowthPropane demand +14.7 % in 2025
Propane exportLPG to AsiaRIPET 92 kb/d, Pembina PRT 25 kb/d, REEF 55 kb/d (late 2026), Trigon (2029)Strong growthOver 40 % of Canadian propane exports went to Asia in 2024

DEMAND & PRODUCTION PROJECTIONS

What the forecasts say

Key risks

  • Global polymer oversupply
  • Ethane supply shortfall if gas drilling slows
  • Terminal timing on the West Coast

DEVELOPMENT: TENURE, ROYALTY, PERMITTING

What a developer needs to know

Tenure
Covered by PNG tenure; no separate NGL tenure.
Royalty
NGLs royaltied under the Modernized Royalty Framework as gas by-products.
Lead time
3–5 years for extraction plants; 5–7 years for a cracker

Permitting path

  1. AER facility licences
  2. EPEA approvals for crackers (Industrial Heartland)
  3. Federal Impact Assessment for large petrochemical builds

Infrastructure needs

  • Deep-cut straddle plants
  • AEGS 330 kbbl/d ethane system
  • Rail and marine LPG terminals

Active players

DowNOVA ChemicalsInter Pipeline / Heartland PolymersPembinaWolf MidstreamKeyeraAltaGasPlains

Recommended next steps

  • Track Dow Path2Zero phase schedule and Pembina ethane supply
  • Model ethane credits in gas well economics
  • Map straddle-plant catchments against Montney liquids yield

MINES, PILOTS & PROJECTS (1)

Who is already working this commodity in Alberta

  • Dow Path2Zero (Fort Saskatchewan)Hydrogen · Dow / Linde · 1,285 kt/yr ethylene + PE Phase 1 (late 2029); Phase 2 2030Construction (2026)C$10–11.5 B; CO2 via ACTL; Linde hydrogen plant.Source ↗

SOURCES

Profile updated 2026-10-08. Registry provenance ids: L20 (Survey Data Registry).

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