Prime Minister Mark Carney has highlighted the significant role Canada plays in fueling American growth through exports of natural gas to the U.S. In a recent speech, Carney raised the question of the potential impact if Canada were to cease these exports.
Despite the ongoing trade tensions between Canada and the U.S., energy products like oil and natural gas have not been used as bargaining tools. While Alberta Premier Danielle Smith has opposed the idea of leveraging energy exports, Ontario’s Doug Ford has emphasized the need to consider all options.
Carney emphasized that the U.S. heavily relies on Canada for its energy needs, stating that Canada supplies 99% of their natural gas imports, 85% of electricity imports, and 60% of crude oil imports. The U.S. Energy Information Administration reported that Canada supplied nearly all of America’s non-domestic natural gas in 2025, accounting for about 8.6 billion cubic feet per day.
Dulles Wang, director of Americas gas and LNG at Wood Mackenzie, noted that while Canadian natural gas exports to the U.S. may seem relatively small compared to domestic production, the geographical distribution of these shipments is crucial. He highlighted that regions like the Pacific Northwest heavily rely on Canadian gas imports.
Halting natural gas exports to the U.S. could have severe economic repercussions for Canada, with Wang warning of potential price drops due to oversupply and strained storage capacity. Wang stressed the importance of diversifying energy markets beyond the U.S., citing recent LNG exports to Asian markets from facilities like LNG Canada in Kitimat, B.C.
The Canadian government aims to support further energy export projects to reduce reliance on the U.S. market. Initiatives like the second phase of the LNG Canada project and the Ksi Lisims LNG export facility signify a commitment to expanding energy export opportunities.
