Energy
Canadian Gas Association Writes a Letter to Prime Minister Justin Trudeau Highlighting the Importance of Natural Gas Energy Choice for Canadians

From EnergyNow.ca
On January 29, 2024, the Canadian Gas Association (CGA) sent a letter to Prime Minister Justin Trudeau, emphasizing the significance of the natural gas energy option for Canadians, a need underscored by the recent severe weather conditions in Western Canada.
The letter reads as follows:
Canada’s energy delivery companies had their work cut out for them over the last few weeks, ensuring the country could get through a period of extreme cold temperatures. The polar vortex that locked in across the continent only underscored how important an energy system with many options is to our overall well-being. I thought I would expand on this point in my first letter to you in 2024.
The second week of January saw temperatures in parts of the country drop well into the minus 40s, with windchill in the minus 50s. This triggered alerts from various authorities to reduce electricity use. Around 4 pm in Alberta on January 12th wind and solar generation facilities were operating at only a few percentage points of their capacity. But power was desperately needed. Luckily, a combination of in-province and neighbouring jurisdiction power sources – like natural gas-powered plants – could help meet the power needs of the province.
It is worth drawing attention to the fact that the alerts were all about a single energy system – the electricity grid. While that grid was under strain due in part to low renewable energy generation availability, the natural gas delivery system (a separate system that delivers gas energy, not electrons) was delivering approximately 9 times the energy and operating without any alerts required.
The contribution of the gas system is really worth emphasizing.
Nationally, over an average year, electricity meets just over 20% of our energy needs. Natural gas directly delivered to customers – residential, commercial and industrial – meets almost twice that amount, or just under 40% and liquid fuels like gasoline and diesel meet the balance. But at certain times of the year, such as during the recent January freeze, the differential between what natural gas and electricity deliver grows dramatically. At points earlier this month Alberta had use of roughly 12,000 megawatts of electric power and over 110,000 megawatts of gas energy equivalent.
And yet it was the electric system, not the natural gas system, that was threatened.
Media coverage during and after the freeze referenced how the electric system is threatened by extreme weather and needs to be built out to meet demand. But to suggest that the electric system could ever meet the energy delivered by natural gas over the gas delivery system is simply unrealistic. Do those who advocate for the electrification of all energy, especially peak heating needs, pretend that we have either the means, the resources, or the dollars, to build out an electric system that could meet roughly nine times the load of the gas system? Do advocates of natural gas bans appreciate that banning natural gas power generation would leave us in situations of actual shortage – a terrifying spectacle in the event of minus 50 degree weather?
Again, the point here is to underscore the value proposition of natural gas and the infrastructure that delivers it: the reliability these provide is extraordinarily important. This value is particularly well demonstrated when severe weather – a Canadian reality – hits us. We have to stop talking about eliminating the choice of energy options like natural gas, and relying exclusively on one energy delivery system, like electricity. Each delivery system has its own advantages, and natural gas is particularly well suited to meet heating needs. That should never be overlooked, as this month’s weather events reminded us.
Prime Minister, when it comes to energy – in supply options, and in delivery systems – diversity truly is our strength in Canada. We must maintain natural gas as an option for reliability, for affordability, and for sustainability – all of which are essential for our country’s energy security and the wellbeing of the Canadian consumer.
Respectfully,
Timothy M. Egan
President and CEO, Canadian Gas Association
Chair, NGIF Capital Corporation
About CGA
The Canadian Gas Association (CGA) is the voice of Canada’s gaseous energy delivery industry, including natural gas, renewable natural gas (RNG) and hydrogen. CGA membership includes energy distribution and transmission companies, equipment manufacturers, and suppliers of goods and services to the industry. CGA’s utility members are Canadian-owned and active in eight provinces and one territory. The Canadian natural gas delivery industry meets 38 per cent of Canada’s energy needs through a network of almost 584,000 kilometers of underground infrastructure. The versatility and resiliency of this infrastructure allows it to deliver an ever-changing gas supply mix to 7.6 million customer locations representing approximately two-thirds of Canadians. CGA members ensure Canadians get the affordable, reliable, clean gaseous energy they want and need. CGA is also working to constantly improve that gaseous energy offering, by driving forward innovation through the Natural Gas Innovation Fund (NGIF).
SOURCE Canadian Gas Association
Business
Trump’s ‘Liberation Day’ – Good News for Canadian Energy and Great News for WCSB Natural Gas

By Maureen McCall
April 2 was ‘Liberation Day’ according to U.S. President Donald Trump. While the announcement of U.S. reciprocal tariffs was not good news for many countries, Trump’s announcement also had some good news for Canadian Energy companies – 0% tariffs. Some tariffs against Canada are still in place, but for now, no energy sector tariffs against Canada underscores the importance of Canadian energy to the Trump administration.
President Trump announced new tariffs on April 2nd, which he dubbed “Liberation Day” with a 10% baseline tariff for all U.S. trading partners, to go into effect on April 5th. He also announced more reciprocal tariffs against the “worst offenders,” which will go into effect on April 9th but no tariffs on Canadian energy were announced.

Trump’s Reciprocal Tariffs Announcement
Alberta Premier Danielle Smith celebrated the win which she says is precisely what she has been advocating for from the U.S. Administration for months.
“The United States has decided to uphold the majority of the free trade agreement (CUSMA) between our two nations. It also appears this will continue to be the case until after the Canadian Federal election has concluded and the newly elected Canadian government is able to renegotiate CUSMA with the U.S. Administration. It means that the majority of goods sold into the United States from Canada will have no tariffs applied to them, including 0% tariffs on energy, minerals, agricultural products, uranium, seafood, potash and a host of other Canadian goods.”
This is great news for Canadian energy producers, especially natural gas producers who are experiencing dramatic growth in the Montney.
At this year’s S&P Global CERAWeek, Mike Verney, Executive Vice-President of petroleum reserves with McDaniel & Associates Consultants Ltd. had great news for Canadian companies.
McDaniel’s study, commissioned by the Alberta Energy Regulator (AER), reported data indicating that Alberta has proven natural gas reserves of 130 trillion cubic feet (TCF), compared to previous provincial estimates of only 24 TCF. According to the study, if probable gas reserves are added in, the overall figure is 144 TCF.
As reported in the Financial Post, Verney said “We’re growing like mad in the Montney. The major natural gas plays in the U.S. are actually declining versus the Montney that is actually growing.”
This message was echoed by Michael Rose, the Chairman, President and Chief Executive Officer of Tourmaline Oil, Canada’s largest natural gas producer during his keynote address at the SPE Canadian Energy Technology Conference and Exhibition last month in Calgary.
Not a Sunset Industry

Michael Rose – Chairman, President and Chief Executive Officer of Tourmaline Oil
Rose opened his keynote speech with optimism saying: “This is not a sunset industry- it is closer to sunrise than sunset” and spoke about Canada’s compelling opportunity for natural gas production as well as Tourmaline’s successes.
Reuters reports that analysts are wondering about the U.S.’s ability to meet the demand growth of booming liquefied natural gas (LNG) projects and also to meet huge domestic demand for natural gas-fired electricity generation to supply new data centre growth. Canada’s resources in Alberta’s Deep Basin and the North East BC Montney will be a huge supply source.
Deep Basin and the Montney are where the most competitive gas plays are found, and where Tourmaline operates as well as producing oil in the Peace River Triassic Lake.
Rose credits technology development and the building and ownership of midstream infrastructures as keys to affordability and profitability for Canadian companies which can control costs by controlling more of the production cycle. In addition, AI optimization has helped the company increase production. He also pointed out the environmental advantage of natural gas production. Since society needs the energy density of hydrocarbons to power industries, natural gas is the best choice as it is “the cleanest member of the fossil fuel stack.” He quoted Arjun Murti– 30 year Wall Street research analyst, buy-side investor, and advisor covering the global energy sector now with Veriten.com who asserts that there is no real energy transition and the only thing humans have actually transitioned off in the energy world is whale oil.
Rose said that 2022 statistics indicated the world set a record for all sources of energy. He pointed out that coal was supposed to replace wood 200 years ago, and it still hasn’t while wood, which has been renamed as biomass is still 7% of the overall energy stack.
The Golden Age of Gas
Rose’s natural gas outlook to 2028 in Canada was rosy saying gas “never looked better.” Beyond 2028 also looks good with a proliferation of electricity generation planned to feed data centre growth. In Alberta alone, 15 projects are in queue which will create a material increase in demand. In the U.S. however, some large U.S. natural gas supply basins have reached a tipping point with only 50% estimated ultimate recovery (EUR) left. Rose reported that drilling inventory is an issue in the U.S. but not in Canada. For example, Tourmaline has over 20 years of Tier 1 drilling inventory left while its U.S. peers don’t have the same luxury. He noted that U.S. M&A is currently driven by a quest for inventory. He noted that U.S. companies will chase profitable acquisitions in a quest for inventory to lower future costs saying “Things are still cheap in Canada.”
Canadian Resources – Will we ever be an energy superpower?
With global exploration down sharply, focus has turned to the WCSB where in the case of the Montney, only 5% has been produced so far.
“All you hear about is the western Canadian sedimentary basin and it is a monster, and it is the gift that keeps on giving, but we’re actually blessed with multiple other opportunities. Like the U.S., a number of them are off limits for government policy reasons, but certainly changes are in order.”
Some of the undeveloped basins in Canada which Rose referred to as “forbidden basins” are located on the West Coast and in the lowlands in Quebec. The tariff issue may be changing attitudes towards oil and gas development in those areas. Dealing with an unsupportive Federal Government for the last decade has made capital attraction difficult. Routine talk about phasing out Oil and Gas and the series of regulations, bills and initiatives that have stalled basin development and new pipelines have taken its toll. It has discouraged capital from flowing into the sector – a period that Rose said “ felt like an endless hurricane.”
So what is the right path forward?
The challenge for industry and policymakers is finding the right balance between energy and the environment according to Rose. He advises that setting unrealistic goals and timelines that are not based in science/technology or economics won’t work, and notes a shift away from the time frame set by net zero.
“We look at the whole environment, air, land and water, and we develop plans to improve performance in all three. We have a group of young engineers working on what amounts to an embedded clean tech business within our company, and I think they’re having a lot of fun doing it.”
One of Tourmaline’s longest initiatives, is the conversion of drilling rigs from diesel to natural gas, using field gas for fuel. The result is that projects have an improved economic return as well as reduced emissions. Rose says this year, Tourmaline will cross a “200 million barrier” and will have displaced 200 million litres of diesel and save $200 million including the makeup gas used. He says they like to think of it as a drill bit to burn initiative.
Mike Rose still had an optimistic view of the path forward for energy companies that is certainly more relevant after yesterday’s “Liberation Day” announcement from Trump.
“We’ve missed 10 years of opportunities,” Rose said. “It would have made us so much stronger than we are today as an industry and a country. Still, late is better than never. The only thing I’ll say about tariffs is that they are just another curve ball. We’ve had nothing but curve balls for 10 years, and we’ll figure out how to hit this one too. Given how integrated both countries’ energy systems are and will continue to be, I think a great narrative that just might appeal is: ‘Let’s make North America the world’s preeminent energy and oil and gas superpower’.”
Maureen McCall is an energy professional who writes on issues affecting the energy industry.
Canadian Energy Centre
Saskatchewan Indigenous leaders urging need for access to natural gas

Piapot First Nation near Regina, Saskatchewan. Photo courtesy Piapot First Nation/Facebook
From the Canadian Energy Centre
By Cody Ciona and Deborah Jaremko
“Come to my nation and see how my people are living, and the struggles that they have day to day out here because of the high cost of energy, of electric heat and propane.”
Indigenous communities across Canada need access to natural gas to reduce energy poverty, says a new report by Energy for a Secure Future (ESF).
It’s a serious issue that needs to be addressed, say Indigenous community and business leaders in Saskatchewan.
“We’re here today to implore upon the federal government that we need the installation of natural gas and access to natural gas so that we can have safe and reliable service,” said Guy Lonechild, CEO of the Regina-based First Nations Power Authority, on a March 11 ESF webinar.
Last year, 20 Saskatchewan communities moved a resolution at the Assembly of First Nations’ annual general assembly calling on the federal government to “immediately enhance” First Nations financial supports for “more desirable energy security measures such as natural gas for home heating.”
“We’ve been calling it heat poverty because that’s what it really is…our families are finding that they have to either choose between buying groceries or heating their home,” Chief Christine Longjohn of Sturgeon Lake First Nation said in the ESF report.
“We should be able to live comfortably within our homes. We want to be just like every other homeowner that has that choice to be able to use natural gas.”
At least 333 First Nations communities across Canada are not connected to natural gas utilities, according to the Canada Energy Regulator (CER).
ESF says that while there are many federal programs that help cover the upfront costs of accessing electricity, primarily from renewable sources, there are no comparable ones to support natural gas access.
“Most Canadian and Indigenous communities support actions to address climate change. However, the policy priority of reducing fossil fuel use has had unintended consequences,” the ESF report said.
“Recent funding support has been directed not at improving reliability or affordability of the energy, but rather at sustainability.”
Natural gas costs less than half — or even a quarter — of electricity prices in Alberta, British Columbia, Ontario, Manitoba and Saskatchewan, according to CER data.
“Natural gas is something NRCan [Natural Resources Canada] will not fund. It’s not considered a renewable for them,” said Chief Mark Fox of the Piapot First Nation, located about 50 kilometres northeast of Regina.
“Come to my nation and see how my people are living, and the struggles that they have day to day out here because of the high cost of energy, of electric heat and propane.”
According to ESF, some Indigenous communities compare the challenge of natural gas access to the multiyear effort to raise awareness and, ultimately funding, to address poor water quality and access on reserve.
“Natural gas is the new water,” Lonechild said.
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