Regional Canadian Gas Markets

Market Overview

Ontario is the largest market for natural gas in Canada. In 2001, gas demand totaled 25.5 10⁹m³ (899 Bcf). The industrial and residential sectors account for 36% and 31% of demand, respectively. The commercial sector accounts for 20% and the power sector for about 11%.

The two major local distribution companies (LDCs) in Ontario are Union Gas Limited and Enbridge Gas Distribution Inc. Enbridge is Canada's largest LDC and serves over 1.5 million customers in central and eastern Ontario, southwestern Quebec and parts of northern New York state. Union provides distribution services to more than 1.1 million customers in northern, eastern and southwestern Ontario. The two largest gas marketers in Ontario are Direct Energy and the Ontario Energy Savings Corporation. According to the Ontario Energy Board (OEB), about 50% of the residential consumers buy their gas from a marketer. The OEB regulates the LDCs and licenses gas marketers.

Union's gas prices have been unbundled into four components since 1997 plus and inventory rider added in 2002. The monthly delivery charge of $7.50 is not included in the chart.