In a recent speech, Prime Minister Mark Carney emphasized the significance of Canada’s contribution to American growth through natural gas exports to the U.S. He raised the question of the potential impact if Canada were to cease these exports.
Despite tensions in Canada-U.S. trade relations, energy products like oil and natural gas have not been used as bargaining tools. Alberta Premier Danielle Smith has consistently opposed this approach, while Ontario’s Doug Ford believes all options should be considered.
Carney highlighted that the U.S. heavily relies on Canada for energy, with Canada supplying 99% of their natural gas imports, 85% of their electricity imports, and 60% of their crude oil imports. The U.S. imports a significant amount of natural gas from Canada, accounting for nearly all non-domestic supply, although it represents only a small portion of total U.S. natural gas consumption.
Dulles Wang, director of Americas gas and LNG at Wood Mackenzie, stated that Canadian natural gas comprises about 5% of U.S. consumption according to their estimates. The interconnected natural gas pipelines between Canada and the U.S. serve various regions for residential, industrial, and energy needs.
Enbridge, headquartered in Calgary, holds the distinction of being North America’s largest natural gas provider. The company completed a series of acquisitions worth $19 billion in 2024 to enhance its presence in the U.S.
Wang emphasized the importance of the Canadian natural gas supply to specific U.S. regions like the Pacific Northwest, Seattle, Oregon, and Northern California. He noted that over 90% of the gas in these areas originates from Canada.
The rise of data center construction driven by artificial intelligence has led to increased energy demand in certain regions, with tech giants like Amazon, Google, Microsoft, and Meta relying on natural gas as a power source. Wang warned that halting natural gas shipments to the U.S. would adversely impact Canada’s economy, causing a surplus of supply and plummeting prices.
The Canadian government aims to diversify its natural gas exports beyond the U.S., with LNG shipments to Asian markets from the LNG Canada facility in Kitimat, B.C. The government is supporting additional projects to expand Canada’s energy export capabilities.
Wang stressed the necessity of committing to these projects to reduce dependence on the U.S. market and avoid being stranded in case of disruptions.