Natural gas production held near all-time highs through the first quarter in Canada, even as prices slumped following a mild winter that left supplies in storage at robust levels. That’s because producers are looking beyond near-term weakness and toward an anticipated jump in export demand, according to analysts.

LNG Canada is slated to begin operations this year and is expected to draw down excess supplies to feed mounting global demand. Since the onset of Russia’s invasion of Ukraine in 2022, Europe has shifted away from Kremlin-backed energy and toward North American liquefied natural gas. Demand from Asia and other parts of the world also is projected to rise.

Western Canadian natural gas production in March averaged 18.49 Bcf/d, reaching a fresh high for this month and...