In a recent speech, Prime Minister Mark Carney emphasized the significance of Canadian natural gas exports in fueling American economic growth. This raises the question of the potential impact if Canada were to cease sending shipments across the border.
Despite the ongoing trade tensions between Canada and the U.S., energy products like oil and natural gas have not been utilized as bargaining tools. While Alberta Premier Danielle Smith has been against this idea, Ontario’s Doug Ford believes all options should be considered.
Carney highlighted that the U.S.’s heavy reliance on Canada for energy contributes significantly to their economy. Canada supplies the U.S. with 99% of their natural gas imports, 85% of electricity imports, and 60% of crude oil imports.
The U.S. heavily depends on Canadian natural gas, with imports averaging 8.6 billion cubic feet per day in 2025. However, this represents only about eight percent of America’s total natural gas consumption.
Dulles Wang, director of Americas gas and LNG at Wood Mackenzie, stated that Canadian natural gas shipments to the U.S. are crucial for regions like the Pacific Northwest, where over 90% of gas is sourced from Canada.
Halting natural gas exports to the U.S. could have severe repercussions for the Canadian industry, leading to oversupply, price drops, and economic consequences. The Canadian government aims to diversify its energy exports beyond the U.S., with LNG shipments to Asian markets gaining traction.
The government’s commitment to projects like the LNG Canada facility and the Ksi Lisims LNG export facility demonstrates a strategic move towards reducing dependency on the U.S. market.