Improved prices, along with increased ownership of drilling targets in northern Alberta and British Columbia (BC), should help natural gas production to climb by 18% year/year in 2022, Canadian Natural Resources Ltd. said Tuesday.

The Calgary exploration and production (E&P) company announced its 2022 budget with a natural gas target of 1.98-2 Bcf/d from 1.69 Bcf/d in 2021. Planned capital spending is set to increase by 25% to C$4.34 billion ($3.47 billion) from C$3.48 billion ($2.78 billion).

Gas prices are expected to keep 2021 gains. 

[Want to know how global LNG demand impacts North American fundamentals? To find out, subscribe to NGI’s Daily Gas Price Index]

The E&P is forecasting Canada gas prices this year should average C$3.25/gigajoule at the AECO Hub, with U.S....