Alberta's Economy Diversifies as LNG Exports Gain Traction Amid Strong Local Spending

Carol Kamel with ATB Economics observes a significant transformation for Alberta's natural gas sector, historically a "price taker" in global markets, as the province increasingly positions itself for a future driven by liquefied natural gas (LNG) exports. This strategic shift aims to create a "hedge" against past market vulnerabilities.

Economic Diversification in Context

This economic reorientation unfolds as other local sectors demonstrate robust performance. ATB Financial economist Siddhartha Bhattacharya notes a 5.7% year-to-date increase in receipts for Alberta's food services and drinking places. Alberta restaurant sales alone saw a 6.9% surge in September 2025 compared to the previous year. Calgary leads the provincial culinary scene, hosting 14 of the 19 Alberta restaurants recognized on OpenTable's list of Canada's top 100 establishments. While the food services sector faces its own challenges, including a Q2 job vacancy rate for food services and drinking places that is double the average across all Alberta industries, the broader economic pulse remains strong.

LNG's Growing Impact

The broader provincial economy is being reshaped by major energy infrastructure. The Coastal GasLink pipeline, now commercially operational, is feeding the LNG Canada facility, which shipped its first cargo in mid-2025. LNG Canada Development Inc. is actively seeking to increase its near-term annual export volumes, a move that could pave the way for a Phase 2 expansion. Further bolstering this trajectory, Prime Minister Mark Carney announced the fast-tracking of the Indigenous-led Ksi Lisims LNG project, representing a potential $30 billion investment. These developments are projected by the Alberta Energy Regulator to boost the Alberta benchmark AECO natural gas price, reflecting a strategic pivot towards global energy markets and enhanced economic resilience.