Canada’s methane regulations continue to tighten, with enhanced federal requirements and provincial equivalency reviews shaping compliance pathways for oil and gas operators. Phased implementation timelines, performance-based intensity options and evolving oversight mechanisms make 2026 a critical year. 

This article covers Canadian federal methane regulations, the proposed oil and gas GHG emissions cap and key provincial methane rules. For U.S. methane requirements, see our U.S. Federal and U.S. State summaries. For import-driven requirements affecting LNG and global exports, refer to our International Methane Regulations overview. 

Given the dynamic nature of methane regulations, we will continue to update this content periodically to reflect rule changes and our insights. Please refer to the date above for the latest revision. 

Key takeaways: 

• National methane regulations applying to the oil and gas industry were finalized in late 2025

• The national GHG cap is not in force

• Alberta, Saskatchewan and British Columbia provincial regulatory programs are under review to determine compliance with the federal regulations

• Deadlines for phased requirements in Saskatchewan and British Columbia provincial regulations apply in 2026

Canada – Federal

Canada finalizes methane regulations for upstream oil and gas; first compliance deadlines in 2028

Canada amended and finalized its methane regulations that apply to the oil and gas industry in December 2025. Requirements are phased, with the first deadlines applying to new or modified sites in 2028. By 2030, all sites, including existing ones, must comply with rule provisions. The rule establishes tighter LDAR requirements (more component types, more frequent monitoring and faster repair) and restricts allowed venting and flaring operations. There are two pathways available for regulated facilities. The first option is that operators may not vent any methane. The alternative pathway is performance-based and sets specific intensity thresholds by facility type. This pathway allows operators flexibility in monitoring and control strategies, so long as the intensity threshold can be credibly demonstrated. 

As part of this rule, the Canadian federal government will be reassessing equivalency agreements with Alberta, British Columbia and Saskatchewan. The provinces must demonstrate that province-specific rules are at least as effective as the federal regulation. 

Implications for operators:

• 2026 should be treated as a planning year where operators should determine their current intensities and compliance pathways

• Capital planning to prevent venting or flaring may be required 

• Montrose recommends piloting LDAR programs that will be used to comply with the rule to establish work practices and create a baseline on expected findings

• To maximize efficiency, establish work practice, recordkeeping and reporting strategies to align with both provincial and federal requirements

Canada oil and gas GHG cap still under review

Canada’s Oil and Gas GHG Emissions Cap is not yet in force; it is still in draft regulatory stages. It was originally targeted to start in 2026, with 2026 being the baseline year for oil and gas operators, the rule is still facing opposition. Based on the most recent public statements, the government is reviewing feedback on the emissions cap. 

Implications for operators:

• No GHG emissions cap exists in Canada at this time 

• Operators should continue to monitor regulatory developments 

Canada – Provincial

Provincial regulatory equivalency agreements under review

As part of the amended federal Enhanced Methane Regulations, provincial regulatory equivalency agreements are now under review. The provincial regulations must be at least as stringent as federal requirements. Loss of equivalency would trigger federal enforcement. Provinces with programs under review include: 

• Alberta 

• British Columbia

• Saskatchewan

Implications for operators:

• Ensure operations are compliant with the new federal regulations

• Monitor equivalency determinations and be prepared to implement new provincial requirements, if needed

Saskatchewan methane rule requires 50% reduction in pneumatic venting by 2026

Saskatchewan’s Ministry of Energy and Resources finalized methane regulations targeting methane emissions from the upstream oil and gas industry in 2024. The regulation, which focuses primarily on LDAR programs and pneumatic venting, became effective last year. The rule requires semiannual LDAR surveys until 2027 when the frequency increases to three times annually.  

The rule also requires that new facilities do not vent gas from pneumatic devices and that existing facilities reduce venting emissions from pneumatic devices with phased reduction requirements until December 2028, when all pneumatic device venting must be eliminated. Fifty percent of emissions from natural gas-actuated pneumatic devices must be phased out by December 31, 2026. 

Implications for operators:

• Existing facilities must phase out natural gas-actuated pneumatic devices, achieving a 50% reduction in venting emissions by December 31, 2026, 75% by 2027 and 100% by 2028 

• LDAR programs with the increased survey frequency should be in place now and operators must ensure that all required records are maintained 

• New facilities must be designed with no natural gas-actuated pneumatic devices venting to atmosphere 

• Reports are due annually on April 1 

British Columbia methane rule introduces surface casing vent limits in 2026

The British Columbia Energy Regulator amended its Drilling and Production Regulation in 2025 to reduce methane emissions from the upstream oil and gas industry. The regulation includes work practice requirements to reduce venting emissions, requires enhanced LDAR programs and necessitates that operators eliminate venting emissions from natural gas-actuated pneumatic devices and compressors.  

Surface casing vent emission limits became effective January 1, 2026. The LDAR monitoring frequencies and venting standards became effective January 1, 2025. New facilities may not install natural gas-actuated pneumatic devices that vent to atmosphere, as of January 1, 2025. The other requirements become effective in a phased manner through January 1, 2035. 

Implications for operators:

• Measure surface casing venting emission rates to verify compliance with the new requirement (3 m3 natural gas/day) 

• LDAR programs with the increased survey frequency should be in place now and operators must ensure that all required records are maintained 

• Compressor seal venting requirements are effective and operators must ensure their compressors comply on an individual and fleet basis 

• Venting reports are due annually on March 31 

• Operators should ensure that they have a plan to meet the remaining work practice and operational requirements that become effective 2026 – 2035 

• New facilities must be designed with no natural gas-actuated pneumatic devices venting to the atmosphere 

Canada’s regulatory trajectory is clearly toward stronger methane management, including expanded LDAR requirements and greater emissions reduction through venting limitations. Operators need to look beyond specific regulations and build a proactive program based on robust measurement and reporting standards. If you want to discuss with a methane expert what that strategy could look like, get in touch here.  

For U.S. methane regulations, review our U.S. Federal and U.S. State methane regulation articles. For international methane import standards that may affect Canadian exports, see our International overview.