Regional Canadian Gas Markets

Market Overview

Quebec is the fourth-largest gas consumer in Canada. In 2001, Quebec consumed 5.3 10⁹m³(186 Bcf) of natural gas of which the industrial sector accounted for 60%, followed by residential and commercial sectors at 28% and 12%, respectively. Quebec's energy needs are primarily met by hydroelectricity and imported oil.

Gaz Métro is the largest LDC and delivers 97% of natural gas consumed in the province. The Gatineau-Hill area is served by Gazifère. The LDCs are regulated by the Régie de l'énergie, a provincial regulatory board. Most industrial customers purchase their gas from marketers but there is limited competition at the retail level. According to the Régie, gas marketers have not found the Quebec residential market attractive because the market is dispersed and expensive to serve. At the same time, there has been opportunity for gas in some new upscale housing developments that feature gas appliances. Electricity is the energy of choice in Quebec for home heating and cooling.

Source: NEB