An interview with The Honourable Tim Hodgson, Minister of Energy and Natural Resources

You’ve described energy as one of Canada’s strongest strategic assets. In a more uncertain global environment, how can Canada leverage its energy and mineral resources to forge new partnerships worldwide?

Energy and natural resources are some of Canada’s strongest cards in the volatile global environment we find ourselves in. At a time when countries are strengthening their supply chains, energy security, and economic sovereignty, Canada offers stability, high environmental standards, a world-class labour force and a trusted rule‑of‑law system.

That combination makes us an attractive partner for allies looking to diversify away from unreliable and coercive energy suppliers. Whether it’s natural gas, uranium, critical minerals, or clean electricity, Canada can help meet global demand while strengthening long‑term partnerships based on trust and mutual benefit.

We are already seeing this play out through new trade agreements and energy partnerships, For example, the 56 new deals and partnerships signed under the Critical Minerals Production Alliance signals to the world that Canada is a leader in bringing new projects to market, countering market manipulation by non-market actors, and strengthening global supply chains. Our goal is not to simply export volumes—it is to do so through strategic relationships with democratic allies that support shared prosperity, resilience, and security for decades to come.

Projects like the Sunrise Expansion are being framed as both economic and nation-building investments. What role does natural gas infrastructure play in strengthening Canada’s energy security and keeping energy affordable for Canadians?

“Natural gas infrastructure plays a fundamental role in Canada’s energy system. It keeps homes heated, businesses operating, and electricity grids reliable—especially during peak demand and extreme weather.”

The Sunrise Expansion Program is a great example of a project that reinforces our energy security while keeping energy affordable for Canadians. The expansion project will strengthen energy security by moving reliable, Canadian‑produced gas to where it is needed most, reducing bottlenecks and dependence on external supply. This will enable us to heat more homes, businesses, hospitals and schools in B.C., in addition to providing gas for electric power generation and industrial and manufacturing processes. This expansion ensures British Columbia has enough gas supply as LNG export facilities like Woodfibre LNG – which will be the first net-zero LNG facility in the world – come online.

Sunrise is also a critical economic investment. It will add more than $3 billion to Canada’s GDP and generate over $700 million in tax revenue for new roads, hospitals and schools in B.C. At peak construction, it will create 2,500 jobs, including for local Indigenous communities, with whom Enbridge has been working on this project.

Natural gas infrastructure like Sunrise supports our nation‑building goals. It enables industrial development, supports jobs across the country, and underpins exports that strengthen Canada’s economic position. These are long‑lived assets that serve both today’s needs and tomorrow’s ambitions as Canada builds a more competitive, secure, and integrated energy system.

As Canada looks to attract investment in data centres and AI-driven industries, how is the government working to unlock the necessary energy infrastructure, and what role does natural gas play in Canada’s AI future?

Canada’s AI and data‑centre ambitions depend on one thing above all else: reliable, affordable power at scale. The reality is that clean electricity capacity cannot be expanded overnight. To keep up with demand, Canada will need to double its electrical grid by 2050. As we build out renewables, transmission, and nuclear, natural gas will play a critical bridging role—supporting system reliability, firm power, and grid stability.

The recent National Electricity Strategy the federal government tabled is focussed on how we can build out electrical infrastructure faster and more predictably, while keeping energy affordable for Canadians.

In the strategy, it lays out the critical role natural gas will play to support this transition while maintaining competitiveness. It will allow for Canada to attract investment today—particularly in energy‑intensive sectors like AI—while we continue to lower emissions through efficiency improvements, carbon capture, and electrification. Getting this balance right ensures Canada remains an attractive destination for the industries shaping the next generation of economic growth, and ensures that Canadians can keep the lights on.

Canada has world-class natural gas resources that account for 40% of our energy needs. We have heard clearly the role your government sees Canadian gas playing in the global LNG market. But could you help us understand how natural gas in the domestic context fits into your government’s long-term energy plans?

Canada is the world’s fifth largest natural gas producer, and our natural gas deposits are among the largest and most productive in the world. We have 4 trillion cubic metres of marketable natural gas resources, which could last 300 years, at the current rate of production.

So, it should be no surprise that natural gas is already a cornerstone of Canada’s energy system, and it will remain so for some time. It heats homes, powers industry, supports electricity generation, and provides system flexibility that keeps energy affordable and reliable.

By the early 2030s, Canada is poised to become one of the world’s top LNG exporters, supported by new export capacity, and a federal commitment to move key projects like LNG Canada Phase 2 and Ksi Lisims LNG quickly and responsibly through the Major Projects Office. Our goal is to grow production to 50 million tonnes per annum (MTPA) in the 2030s and 100 MTPA in the 2040s, and we are on the right track.

Domestically, gas supports economic growth and energy security. Internationally, Canadian LNG can displace higher‑emission fuels abroad while strengthening relationships with allies. In the long term, our objective is not to eliminate energy sources overnight, but to steadily reduce carbon intensity while maintaining competitiveness. That means using natural gas more efficiently, leveraging technologies like carbon capture and methane reduction, and pairing gas with growing clean electricity capacity. Natural gas will play a part in a critical and responsibly done transition that meets demand while lowering emissions over time.

“Domestically, gas supports economic growth and energy security.”

Your government has brought a very different approach to energy. What has been the biggest surprise in your role as you have travelled the country meeting with the industry and Canadians more generally?

As Minister of Energy and Natural Resources, I am sometimes told that I am, in a way, the Minister of “national unity”. As I’ve traveled around our regionally diverse country, what has surprised me most is how aligned people actually are. Across Canada—whether I am speaking with workers, Indigenous leaders, industry, or community members—I consistently hear the same thing: Canadians want projects built responsibly, predictably, and in a way that delivers real benefits to communities across this country.

There is far less appetite for endless delay or abstract debate than people assume. The trade war the Americans declared on us was a major wake-up call and a reminder that we have to give ourselves more than anyone can take away. Canadians understand more than ever that energy and natural resources are fundamental to our economy, our security, and our standard of living. They also expect high environmental and safety standards.

Our government was elected to do just that—by providing clarity, certainty, and accountability—Canada can build again in a way that earns public confidence and delivers lasting prosperity for generations to come.

You bring a deep understanding of capital markets and the conditions necessary to make projects financeable. What messages do you have for proponents in Canada as they work to frame their projects within your government’s priorities?

Between 2006 and 2021, Canada’s regulatory requirements rose by 37%—an increase that is estimated to have lowered GDP growth by 1.7 percentage points and employment growth by 1.3 percentage points in the business sector. As someone who spent my career in the private sector, I understand the detriment to Canada’s economy and Canadians’ quality of life those numbers represent. My message is that over the past year, this government has signaled to proponents: we are open for business, and we are serious about getting projects built, and we need to put our heads down together, and get to work.

With this government’s mandate to “Build Canada”, investors will have opportunities to allocate tens of billions of dollars of private capital towards projects that are highly economic and have low geopolitical risk. Designation through the Major Projects Office will accelerate these projects, and provide funding levers like the Canadian Infrastructure Bank, Strategic Innovation Fund, Canada Growth Fund, Indigenous Loan Guarantee Program, among others, to crowd in private capital.

Like I’ve mentioned, the Prime Minister has set an ambitious goal of catalyzing $500 billion in private investment by 2030, to position Canada as a global energy superpower and the strongest economy in the G7. My job as Minister of Energy and Natural Resources, is to make sure that when investors commit capital here, they can do it with confidence, and that the answer to “can we get this built?” is a clear and resounding “yes”. If we get that right, we won’t just compete in the global economy — Canada will lead it.

A decade from now, how do you hope Canadians will look back on your role in helping to “build Canada strong” through energy and natural resources?

In ten years from now, I hope Canadians can look back on this time as an era where “Canada got back into the business of building again” – where more mines started producing, more energy got to reach our allies, and the major projects we set in motion came online on time and on track, and on budget. Where we met the ambitious targets we set out for ourselves. That includes the Prime Minister’s call to action to double non-U.S. trade and unlock up to $500 billion in private sector investment by 2035. To me, success in the next decade would look like hitting those targets—and demonstrating that Canada is one of the most attractive places in the world to invest, build, and grow for decades to come.

“I hope Canadians can look back on this time as an era where “Canada got back into the business of building again” – where more mines started producing, more energy got to reach our allies, and the major projects we set in motion came online on time and on track, and on budget.”

And that is exactly what we are focused on through the Major Projects Office and the full suite of tools we have put in place—from investment tax credits to regulatory alignment and strategic public financing. We are creating a new framework that lays out the conditions for capital to move quickly, for projects to get approved efficiently, and for resources to get to markets where there is demand. Ultimately, building Canada strong to me is about creating prosperity and security in a sustainable way for Canadians to enjoy for generations to come.