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CGA is the national voice of Canada’s gas energy delivery industry, bringing members together to advance safe, reliable and affordable energy solutions for Canadians.
Susanna Zagar, President and CEO, Canadian Gas Association
Canada is entering a new energy era, one defined less by debate and more by the urgent need to deliver affordable, reliable and secure energy amid rising demand, economic uncertainty and geopolitical change. As governments coast to coast position energy as central to Canada’s economic future — and to delivering what the world needs — the importance of balancing domestic affordability, reliability, sustainability and competitiveness has come sharply into focus.
This edition of ENERGY explores those themes from the global stage to local communities and industry leadership. We begin with a conversation with The Honourable Tim Hodgson, Minister of Energy and Natural Resources, alongside reflections from CERAWeek 2026, both focused on Canada’s energy future, competitiveness and the infrastructure needed to support growth in a changing global landscape.
Our political commentators examine how affordability, energy security and infrastructure are increasingly shaping political discussions across Canada. Closer to home, this issue also looks at the role natural gas continues to play in Ontario’s greenhouse sector, supporting food security, while exploring CGA’s proposal to connect more rural and Indigenous communities to affordable and reliable energy infrastructure.
We also spotlight innovation through our Supplier, Manufacturer and Contractor profile on Ultimarii, a Canadian-built AI-enabled regulatory intelligence platform.
Finally, in Fuel for Thought, Scott Balfour, President and CEO of Emera, reflects on leadership, affordability, reliability and the importance of practical energy conversations grounded in long-term resilience.
Together, the stories in this issue reflect a growing focus on the practical systems and infrastructure needed to strengthen Canada’s energy future.
While his role as president and CEO of Halifax-based Emera frequently means Scott Balfour is on the road across North America and the globe, he hasn’t strayed far from his Canadian roots. During a wide-ranging conversation about the challenges of leading an energy company with electricity and gas utility operations in Canada, the U.S. and the Caribbean through a period of massive transformation, he shares leadership lessons from hockey legend Scotty Bowman, and when he talks about Nova Scotia ‘punching above our weight’ he’s referring not only to Emera’s USD $10.4 billion acquisition of Tampa-based TECO in 2016 – which turned the company into a major North American energy player – but also the province’s reputation for producing top NHL talent. In the following interview with U.S.-based energy writer David Coburn, he discusses his career path, managing through unprecedented upheaval, and the evolving energy transition conversation. Comments have been edited for brevity.
What first drew you to the energy sector and what has kept you engaged in it over the course of your career?
I started my career in banking, which ultimately led me to go to work for one of my clients, Armbro Construction (now Aecon Group). At the time, it was a small company involved in road construction in Ontario, but through organic growth and multiple acquisitions it grew into Canada’s largest publicly traded construction and infrastructure development company. It had many clients in the energy sector, building or maintaining, nuclear, coal plants, and gas plants, as well as installing or servicing underground gas infrastructure. When I left construction, I thought the energy industry was interesting. Ultimately, I joined Emera, with its core focus on regulated utilities. There was a time in my life when I would have thought regulated utilities seemed pretty boring place– low drama, low growth. Obviously, that coin flipped a couple of decades ago, and now it’s an industry that really matters. Whether it’s gas or electric, they’re enablers of economic growth and activity within the regions they serve. We serve customers not just 24/7 but every second within that 24/7 timeline, and yet we’re making investment decisions that last for decades. So that mix of mission-critical, complex and impactful was just really, really compelling to me. I’ve been here for 14 years, and it continues to evolve and never gets boring.
Can you tell us about some of the experiences that helped shape your path to ultimately becoming CEO?
After my first year of business school, I took a year off because I was trying to figure out what I really wanted to do, and I spent the year working on the assembly line at a couple of Ford plants. That was in many ways a crystallizing moment for me because there was so much learning that happened around the importance of people and the disconnect that can sometimes happen between leadership and the people who actually have their hands on wrenches. Working at Aecon, again seeing where the money really gets made – in the skilled labour that has hands on tools –reinforced that essential role of leaders in enabling a workforce. My career in banking, where we served a very diverse mix of commercial and corporate clients, taught me the importance of asking the right questions to reach the right decision, and also about the complexities of capital allocation. All of those experiences were significant contributors to wanting to play a role in helping companies succeed. My roles as CFO and President at Aecon, and then when in 2012 as I joined Emera as CFO and later as COO, all allowed me to be very close to the CEO position. I had the good fortune of working with great leaders that allowed me to get direct exposure to the CEO role and ultimately got me to the point where I said, ‘Coach, give me the ball. I want to have my hands on this ball for a while.’
What are the most significant changes shaping the energy industry today, and how do leaders balance the need for innovation and change with maintaining reliable and affordable energy systems?
The level of uncertainty continues to increase and accelerate, whether it’s changes in government policy – energy policy, obviously, is changing quickly – or rapidly evolving technology or changing market realities such as the growth in energy requirements from data centers, which is certainly a significant opportunity and challenge within our industry. Geopolitical conditions are driving changes and challenges in supply chains and affordability. This also impacts the energy sector and can lead to policy and political engagement. So there’s a lot of change going on in the industry, and some of that is challenging, but within those challenges and changes, exists opportunity, which makes the importance of strategy, of execution, of team, of staying customer-focused all the more critical. Customer focus is particularly important when we think about innovation. It’s easy to talk about innovation and it’s become its own talking point, but it must be purposeful, and help with some component of reliability and resiliency, customer service or cost. If it’s not directly and purposefully, quickly, and positively impactful in these ways, then you’re not talking or thinking about it the right way. It can’t just be innovation for innovation’s sake.
How have differing approaches to energy transition across Emera’s footprint affected your ability to reduce emissions?
We have an interesting perspective because we operate in Canada, in the U.S., and in the Caribbean, and the dynamics are very different in each region. In Canada, the drive to cleaner energy is largely legislative, so there is a requirement to be making investments or adopting technologies that meet certain conditions, whether it’s a price on carbon, renewable energy standards, so there’s a certain amount of energy that needs to be renewable by certain timeframes, and a requirement to close coal plants by a specific date. That’s part of what drives activity here in Nova Scotia. In Florida, there are none of those requirements, though there are still, for the time being, some federal tax credits that will fade away between now and 2030. What’s interesting is that we’ve been able to make investments in both jurisdictions and make a difference. When we acquired TECO back in 2016, they had essentially zero renewables in the system, and 38% of the energy was coal. Last year, less than 1% of the energy was coal and 15% of the energy was solar. There, it’s all about whether we can demonstrate that it’s cost-effective for our customers to make those investments, and we’ve done just that, time and again. In Canada, we make those investments because we have to meet certain standards and we have to do it in the most cost-effective way possible, but it certainly risks incremental cost when you need to accelerate investment to meet government or legislative requirements.
How do you view the role of established energy infrastructure – including natural gas – as the energy sector continues to evolve?
It’s foundational. If it ever gets to the point where the price of natural gas is very high, the lens on it could change, but it’s hard to see that changing in North America over a long period. Natural gas is foundational to the energy system, whether that’s for space heating, residential and commercial, or for electricity generation. I think the mindset shift (away from being a short-term “bridge” fuel) is real, I hope it’s permanent, and that is that the search for energy is not an either/or of renewables or nuclear or natural gas, it’s all of the above. There is no logic in thinking that the answer is in one source of energy; the reality is that all of them are going to be critical. And natural gas is that strong foundational base that supports the implementation of renewables, particularly intermittent renewables like wind and solar. I think we’re going to see natural gas as an important energy source for decades to come.
“Natural gas is foundational to the energy system, whether that’s for space heating, residential and commercial, or for electricity generation.”
How would your colleagues describe your leadership style?
I learned early on in my career that more important than knowing what I do know is knowing what I don’t know. When I moved from banking into construction, I became a CFO, but I wasn’t an accountant, and I’d never been in construction before. There was a lot I didn’t know, so learning early and making sure I had people around me who did know was really important. I think my colleagues would say being a consensus builder is part of my style. I do like to engage the right people, put the right people in the room, ask them questions, challenge their thinking, and ideally build consensus in arriving at the best outcome through that process.
Another element of my leadership style that my colleagues might point to is trying to lead with what I call respectful candour. I like to provide feedback in real time. I remember (NHL coaching legend) Scotty Bowman saying that if you’re going to give a player feedback, you don’t wait until the end of the season – you know, the annual performance review – you do it at the end of the shift, and then maybe again at the end of the game. That has always stuck with me, and the respectful candour part of it is to be honest about it, but empathetic, sensitive and respectful and do it in private. You don’t call someone out in a group.
When you think about the next decade, what developments in the energy sector are you watching most closely?
One of them is technology implications for the workforce and how work gets done. Ultimately, a lot of what we do is put steel in the ground, and it’s hard to imagine that aspect of the workforce evolving too significantly, but the application of technology and where that’s going is definitely something that we’re watching. Another one, and it’s real today, is the whole issue around affordability and its impact, the engagement of politicians, policy shifts and legislative reactions to affordability concerns and challenges. We operate in an industry that, for the most part, on the electric side is regulated monopolies – it can be a little different on the gas side, oligopolies in some cases – so that can be an easy target for politicians, particularly with regard to investor-owned utilities. And the other development is geopolitical, and the shifting lens that may have implications for energy security and therefore energy policy. Frankly, I think there’s going to be tremendous opportunity within North America to capitalize on the beneficial position that we have in both countries as it relates not only to how energy is used and the growing demand, but also the reality of our abundant natural resources and therefore the importance of finding and investing in pathways to move that energy to market, whether that’s in molecule or electron form.
What gives you confidence about the future of energy systems in North America?
It feels like energy is having a moment. There’s recognition that it’s never been more important in how society needs and relies upon energy, electrification, and the important role that both electricity and natural gas play within that.. The connection between energy and security has become so foundational and fundamental to our way of life now. And the underlying strength and diversity of our systems in North America – gas and electric – all of these are reasons to be confident. The other thing that gives me confidence is that we’re finally having the right conversations about it. I’ve been concerned that for a long time, we weren’t really having an honest conversation about the connected challenges within the energy transition, reliability and the resulting impact on cost and affordability. There has been a tendency to talk about how the importance of the energy transition, and how were going to be non-emitting by whatever timeline – 2030, 2040, 2050 – without any connection to whether it really is achievable, what its going to do to the cost of energy, who’s going to pay for it and are they willing to pay for it? These are all big questions. Finally we’re starting to have honest conversations around those tradeoffs, and that’s really important because without that honesty, the ability to achieve it has been challenged from the beginning.
What kind of legacy or impact would you like to leave as a leader in this industry?
Ultimately, legacy is decided by others, but I think we all want to make a difference and leave things a little better than we found them. At Emera, I was fortunate enough to take the helm of a great company that was doing really well. As it relates to the team – seeing the people that have grown their careers and developed as individuals to maximize their potential – I’d like to have made a difference for the people and culture along the way, and leave the company in an even better position than how I found it. And I’d like to have had a voice in helping to shape the future of the energy transition, finding the right balance between cost and affordability, and navigating a path forward that is achievable. Not just sound bites that sound good, but a real, practical path to make it happen.
What role, if any, does energy policy play in the outcome of the upcoming provincial election in Quebec, and to what extent might energy policy shape the next federal election, should one be called within the next 12 months?
By Scott Reid
Energy policy isn’t just energy policy. Not anymore. Not in the aftermath of Donald Trump’s year-long assault on the global trading system and his more recent war on Iran. The sheer destructive force of this man’s foreign policy has propelled energy from an evergreen topic to the sole, dominating focus of discussion. In all world capitals and around every kitchen table.
Will the Strait of Hormuz ever be cleared? Or ever again be navigable? How long will the price of gas and groceries remain high? How structural are the inflationary effects? Will western nations soon experience the terror of stagflation – with growth stalling, prices jumping and rates rising?
Energy – its cost, its supply and its security – is reshaping the world economy. As a consequence, it is also reshaping our politics. No jurisdiction, large or small, will escape its effects.
“Energy – its cost, its supply and its security – is reshaping the world economy.”
For Canada that means a couple things. First, fears around energy, cost-of-living and Trump’s trade tactics have conjured a war-time mentality among voters. This peculiar combination of economic anxiety and national solidarity explain so much about our inexplicable politics of late. Carney’s rise in the polls is sustained by people’s sense that he is best suited to lead Canada against a hostile US administration. This come-together psychology also explains how he is able to attract floor crossers from both the NDP and Conservatives – and sweep by-elections to assemble a majority in the House of Commons.
Second, our priorities are being reset with energy at its center. Suddenly, support for pipelines and LNG facilities are soaring. Asian nations, shocked by instability Trump triggered in the Gulf will only double and triple their request of Canada to feed their natural gas and other energy needs. Canadians see this as a lifeline and are lending their support with high approval ratings for the government’s priorities.
Even in Quebec, a jurisdiction that has traditionally rejected talk of pipelines, is changing its attitude. Here too, the dual effect of Trump’s attacks and the world’s energy insecurity are on display. This fall’s election will, at first glance, be driven by the age-old theme of ‘time for a change’ as voters prepare to end the CAQ’s long run in office even with the arrival of a new premier. But look closer and you will see the same broader effects at play. The external threat of Trump is souring voters on the PQ’s promise of a referendum on separation. And energy proposals, like a renewed Energy East initiative, are suddenly seen as viable. Even desirable. The takeaway is unmistakable: even closeted by its own culture, language and political history, Quebec’s election will be buffeted by these same global forces.
In many respects, the lesson of the past year hinges almost entirely on energy policy. From wars to geo-politics; from gas prices to polling results: access to affordable, secure sources of energy eclipse all else. When times are good and energy is abundant, economies grow and political debates widen. But when the world darkens and energy access is threatened, economies shrink and political argument narrows. Energy isn’t just an important issue right now. It is THE issue.
Scott Reid was director of communications to former prime minister Paul Martin, and is the co-founder of Feschuk.Reid.
What role, if any, does energy policy play in the outcome of the upcoming provincial election in Quebec, and to what extent might energy policy shape the next federal election, should one be called within the next 12 months?
By Robin Guy
As geopolitical tensions continue to threaten supply chains and send energy prices spiralling, our allies in Europe and Asia are desperate for stable, democratic energy partners. Canada has exactly what the world wants: abundant energy reserves. Yet, our resources remain trapped in a regulatory and ideological web of our own making.
On the federal stage, we have recently seen some positive signals from the government, such as the Memorandum of Understanding (MOU) between Ottawa and the Government of Alberta. However, a change in tone is not the same as a change in policy. The anti-production machinery built over the past decade remains largely intact. Suspending some of these policies may be a step in the right direction, but suspension alone will not rebuild trust with industry or provide confidence to our allies abroad. Only their outright removal will provide the certainty needed to demonstrate that the Carney government is serious about growing Canada’s oil and gas production.
One year into Prime Minister Carney’s mandate, the legacy of a decade of anti-energy policy still dominates. Voices from the anti-energy Trudeau era – including those who fought for policies such as Bill C-69, the “anti-pipeline act”, the tanker ban, the Inefficient Fossil Fuel Subsidies (IFFS) policy, the industrial carbon pricing regime and the punitive emissions cap – remain around the decision-making table. Actions speak louder than words. In this case, too little action has been taken to allow for the growth of production and exports that the energy sector needs.
That uncertainty carries a real economic cost. Investment in new oil and gas assets has fallen by roughly 23 per cent. Over the past decade, Canada’s net outflow of investment exceeded $1 trillion – the most significant capital exodus in modern Canadian history. Money flows to certainty, and Canada offers anything but. At the same time, the United States is outcompeting Canada on fiscal policy. Washington has restored 100 per cent bonus depreciation for qualifying oil and gas property, while Canada still offers no comparable immediate expensing for major energy investments. If Ottawa is serious about attracting capital and expanding production, it must remove these policy barriers and offer a tax and investment framework that can compete.
Quebec now faces its own energy reality. In Quebec, the province is no longer swimming in the energy surplus it once enjoyed. After decades of energy abundance, Hydro-Québec signalled earlier this year that it will run out of unallocated power by the end of next year. Quebec currently has a backlog of industrial projects requesting over 20,000 megawatts of power – more than the capacity of the entire James Bay project. As the province looks to cap rate hikes at 3 per cent, it cannot on wind and solar alone to meet its energy needs. Quebec shale is estimated to contain up to 20 trillion cubic feet of recoverable natural gas. That is enough to power the province for decades and could allow Quebec to become a net exporter to European markets, creating good-paying jobs and strengthening its economic and energy security.
In the decade that Canada and Quebec have debated a single East Coast LNG terminal, the U.S. has become the world’s largest LNG exporter, with seven operational terminals and five additional terminals under construction. On current projections, Canada’s LNG growth will come only from projects already underway, with no new greenfield terminals expected. To reach Europe today, Canadian gas must move through U.S. facilities, sending jobs and investment outside the country instead of to Quebec and Atlantic Canada.
Canadians expect our governments to deliver tangible results that support economic growth and good-paying jobs. Yet, one year into the Carney government’s mandate, no new pipeline has been approved, and the infrastructure needed to get Canadian energy to market has not advanced.
That lack of action is now being reflected in industry sentiment. According to ATB Capital Markets’ Cormark survey, less than half of respondents said it was probable or highly probable that a pipeline project would be added to the national-interest list. Industry is still waiting for proof that Ottawa is prepared to move from rhetoric to results.
The time for “frameworks” and “understandings” has expired. The world is waiting for Canada to deliver. If we fail to build the pipelines, natural gas capacity and the supporting infrastructure needed to move our resources to market, Canada will continue to lose investment. As long as energy prices remain high, voters will support pro-energy policies that lower costs and strengthen energy security at home and abroad. That is how we grow the economy and deliver prosperity for all Canadians. With a majority government now secured, the Carney government has no excuse not to move forward quickly. The question now is whether it will.
“As long as energy prices remain high, voters will support pro-energy policies that lower costs and strengthen energy security at home and abroad.”
Robin Guy is a Vice President with Crestview Strategy in Ottawa. He brings nearly 20 years of public affairs experience, including over ten years serving as a political staffer for several cabinet ministers during the Harper Government.
What role, if any, does energy policy play in the outcome of the upcoming provincial election in Quebec, and to what extent might energy policy shape the next federal election, should one be called within the next 12 months?
By Kathleen Monk
In 2026, the world’s energy map has been redrawn, fast. Trump’s trade war upended global supply chains, and his military strike on Iran has disrupted the world’s most critical energy artery. Gas prices are rising. And Canada’s premiers and the federal government are fielding calls from European and Asian allies who want stable, democratic energy partners. Pipeline politics, long dormant, are back on the table. Energy has gone from a policy file to the defining political question of the moment, including in the upcoming election in “la belle province” this fall.
Quebec’s political history is inextricably linked to its energy choices, starting with the famous “Maîtres chez nous” campaign of Liberal Jean Lesage in 1962, which led to the nationalization of electricity and the creation of Hydro-Québec. That remains true today. In the upcoming Quebec election, energy policy will matter, but mainly as a proxy for the affordability crisis and economic sovereignty. Since the Coalition Avenir Québec took office, Hydro-Québec has gone from a surplus of 40 TWh to a structural shortage. A $200 billion investment plan aims to meet Quebec’s estimated need for more than 100 TWh. The gamble on the battery industry has backfired, and the postponement of Quebec’s energy transition to the post-Trump era has set the stage.
Affordability is now central to the political debate in Quebec, as households face rising costs, making energy supply and pricing immediate issues. In the leadership race to replace François Legault, relief at the pump was much discussed, and Premier Christine Fréchette has pledged to return additional provincial revenues from QST and royalties directly to Quebec motorists, with targeted measures aimed at supporting the middle class, which have been affected by prices busting $2.00 per liter.
“Affordability is now central to the political debate in Quebec, as households face rising costs…”
With the CAQ struggling in the polls, voters are turning their attention to the more traditional Parti Québécois – Parti libéral du Québec rivalry. The PQ closely links energy to its sovereignty project and the party firmly opposes what it characterizes as the “quiet privatization” of electricity pushed by the CAQ as part of its energy reform. The PLQ shares a similar view. What remains unclear is how either party will meet rising demand while keeping electricity affordable. The PQ is showing some flexibility on future pipelines, and the Liberals are attempting to reposition themselves as a “green economic” alternative. Meanwhile, the up-and-coming Conservatives are pledging to abolish the carbon cap-and-trade market, a move supported by more than half of Quebec voters.
Affordability was also a big part of the narrative ahead of the last federal campaign. Mark Carney’s abolition of the carbon tax effectively neutralized what was previously the Conservatives’ most powerful attack. But the cost of energy has kept rising alongside the general cost of living, which remains the Liberals’ Achilles’ heel on the economic front ahead of the next election, whenever it comes. Meanwhile, Mark Carney has given the green light to a new oil pipeline from Alberta to British Columbia. In doing so, Carney has exposed his left flank, which New Democratic Party leader Avi Lewis is keen to capitalize on. While not without political risk, this positioning allows the NDP to distinguish itself from both major parties by opposing fossil fuel expansion and emphasizing public investment, energy sovereignty, and affordability. In that sense, energy policy may not be the defining ballot question in the next federal election, but it will shape the terrain on which that election is fought. As in Quebec, the debate is less about abstract climate targets and more about who controls energy, who benefits from it, and who pays.
Kathleen Monk is Principal Owner at Monk + Associates, an independent public affairs firm. She appears regularly on CBC News Network’s Power and Politics and sits on the board of CIVIX, a non-partisan charity dedicated to building engaged citizens.
“Natural gas is a critical energy input for greenhouse vegetable production for which there is currently no viable large-scale alternative.”
– Evan Smith, Sustainable Infrastructure Development Lead at the Ontario Greenhouse Vegetable Growers.
By Graham Chandler
“While some growers utilize biomass as a supplemental or backup heating source, its availability and costs can be prohibitive, particularly at the scale required for year-round greenhouse operations,” says Smith. However, he adds, the sector is exploring emerging alternatives such as biogas and hydrogen blending as longer term options in order to reduce its carbon footprint.
And these emerging renewable options do hold promise. Biogas is a renewable fuel produced when organic materials are broken down by bacteria in an oxygen-free environment through anerobic digestion, allowing energy to be recovered from organic waste streams. But current biogas production remains limited in scale and so cannot meet the full energy demands of greenhouse operations. Similarly, hydrogen natural gas blending holds potential to reduce fossil fuel use, but the necessary infrastructure and supply chains are still in early stages of development.
“In summer, natural gas remains the key enabling fuel that has allowed greenhouse agriculture to produce fresh vegetables year-round, including in climates where outdoor production is limited or seasonal,” continues Smith. “Access to affordable and reliable natural gas enables growers to maintain the consistent environmental conditions required for successful crop production, including precise control of temperature and humidity,” says Smith.
“Access to affordable and reliable natural gas enables growers to maintain the consistent environmental conditions required for successful crop production, including precise control of temperature and humidity.”
“During winter months, natural gas is used primarily to provide heat essential for healthy plant growth. In the summer, the controlled heat generated by natural gas systems helps dry the crop in the morning, reducing excessive humidity that would otherwise increase disease pressure and negatively affect crop health and productivity.”
So, without access to natural gas, winter greenhouse production would be at best uncompetitive, and fresh produce during colder months would need to be imported from southern growing regions says Smith–thus energy costs for greenhouse production would increase significantly in the absence of natural gas, undermining the competitiveness of Canadian-grown greenhouse vegetables in both domestic and North American markets. So continued access to affordable natural gas remains essential to maintaining food security, supporting local production, protecting investments, and enabling the sector to pursue realistic pathways in order to reduce our carbon footprint over time as workable alternative energy solutions mature.
“Energy costs for greenhouse production would increase significantly in the absence of natural gas.”
Smith came into his position in December 2025, joining as the Sustainable Infrastructure Development Lead, assuming responsibility for key files supporting the sector’s sustainability objectives, growth, and long-term energy needs. He holds a Master of International Public Policy degree from the Balsillie School of International Affairs at Wilfrid Laurier University, where he specialized in economic relations and participated in the Global Political Economy and STEM for Resilience research clusters.
During his graduate fellowship, Evan co-authored a policy brief examining the future of critical minerals in Canada, which was submitted to Global Affairs. His previous experience includes serving as a Program and Policy Assistant at the Ontario Ministry of Transportation, where he supported the rollout of the Automated Licence Plate Renewal program and contributed to the development of fraud policy and procedures. He also led a research team at the New Brunswick Institute for Research, Data and Training examining the implementation of the National Housing Strategy in New Brunswick.
The future
Smith says he expects the Ontario Greenhouse Vegetable sector to continue growing at a rate of approximately 5% annually, a trend he feels will result in a steadily increasing energy demand across the sector. Greenhouse production is highly efficient and allows Ontario greenhouse growers to yield up to 20 times more produce per square meter compared with outdoor agriculture. As a result, the evolving energy landscape will play a central role in shaping how the sector develops and sustains year-round production.
“Greenhouse production is highly efficient and allows Ontario greenhouse growers to yield up to 20 times more produce per square meter compared with outdoor agriculture.”
In recent years, many greenhouse operations have adopted supplemental lighting systems to support consistent year-round production cycles. Smith reckons the continued expansion of this practice will be influenced by electricity and natural gas prices, as well as the availability and capacity of supporting infrastructure. He notes combined heat and power (CHP) systems are receiving increased attention as constraints in electricity supply limit sector growth in some regions. These systems allow growers to generate electricity on-site while capturing waste heat for greenhouse heating, thereby improving overall energy efficiency. The process is commonly referred to as co-generation, as both heat and electricity are produced from a single energy source.
Smith says Ontario is currently prioritizing investments in electricity transmission expansion over the next two decades, and similar infrastructure expansion will also be required for natural gas distribution to support greenhouse growth. He expects projects such as the Panhandle Regional Expansion Project represent necessary steps toward addressing rising energy demand in key greenhouse production regions.
In support of the sector’s continued growth and energy reliability, Robert Petro, OGVG’s Energy, Infrastructure, and Environment Coordinator, testified on behalf of the greenhouse sector before the Ontario Energy Board in support of the Panhandle Expansion. The 2024 Panhandle Expansion is a critical infrastructure project that supports the expansion and long-term viability of greenhouse production in southern Ontario through 2030.
Smith foresees energy efficiency remaining a critical component of sustainable sector growth. Over the past decade, greenhouse growers have participated in programs that support the transition from high-pressure sodium (HPS) lighting systems to more efficient LED technology. Energy curtains are also widely used to improve heating efficiency and reduce natural gas consumption. Continued access to energy-efficiency programs will be essential to enabling the greenhouse sector to expand production while responsibly managing overall energy demand.
In addition to electricity, natural gas, water and wastewater infrastructure will play a significant role in determining future sector growth, notes Smith. Many greenhouse operations already face constraints related to water availability and wastewater capacity. Investments in water, wastewater, electricity, and natural gas infrastructure is not only for greenhouse farms, but also for the municipalities in which they operate. Infrastructure expansion that supports greenhouse farms also enables broader economic development, including manufacturing, commercial activity, and housing growth, reinforcing the importance of coordinated infrastructure planning across regions.
Smith says natural gas remains a foundational input in greenhouse production of cucumbers, peppers, and tomatoes—currently the most popular crops. Maintaining consistent indoor temperatures and humidity throughout the year requires a stable and reliable heating source, and natural gas is currently the only energy option capable of meeting these needs at the scale required for commercial greenhouse operations.
“Maintaining consistent indoor temperatures and humidity throughout the year requires a stable and reliable heating source, and natural gas is currently the only energy option capable of meeting these needs at the scale required for commercial greenhouse operations.”
Natural gas enables the deployment of advanced energy technologies such as the aforementioned combined heat and power (CHP) systems, too, says Smith. These systems allow growers to generate electricity on-site while capturing and reusing waste heat for greenhouse heating and climate control, significantly improving overall energy efficiency. In some cases, electricity generated through CHP can be supplied back to the grid, contributing to broader provincial electricity needs and enhancing system resilience.
Looking further ahead, Smith sees natural gas serving as a cornerstone upon which lower carbon solutions such as biogas integration and hydrogen blending can be applied to improve environmental performance. He also sees continued technological developments supporting the advancement of carbon capture solutions that recover carbon dioxide from combustion processes or directly from the air and deliver it back to crops for photosynthesis, further closing the production loop.
Until then, continued access to affordable and reliable natural gas, with appropriate cost certainty and pricing caps to protect essential food production, will remain critical to enabling the expansion of year-round greenhouse production and ensuring that Canadians continue to have access to domestically grown cucumbers, peppers, and tomatoes.
Across Canada, many rural and Indigenous communities continue to face a basic challenge that most Canadians rarely think about: access to affordable and reliable energy.
In many communities, households still rely on propane, heating oil, electric resistance heating, or diesel for heat and power. These energy sources are often more expensive, more vulnerable to supply disruptions, and harder to maintain during periods of extreme cold. At the same time, many of these communities are located near existing natural gas infrastructure but remain unconnected because the economics of expansion do not work under current regulatory frameworks.
This represents both a challenge and an opportunity.
Canada already has one of the largest natural gas delivery systems in the world, with approximately 600,000 kilometres of transmission and distribution infrastructure delivering about 40% of the country’s energy needs. More than 20 million Canadians rely on natural gas every day to heat homes, schools, hospitals, businesses, and industrial facilities. In many cases, the infrastructure needed to serve nearby Indigenous and rural communities is already in the ground.
The issue is not whether the technology exists. It is whether the final gap can be closed to make projects viable.
The affordability challenge
Energy affordability remains a significant issue in many Indigenous and rural communities across Canada. According to Statistics Canada, 5.6% of Canadian households were considered energy poor in 2021, meaning they spent 10% or more of their after-tax income on household energy costs. For on-reserve households, that number was 12.9%, more than double the national average.
These pressures are compounded by the fact that many communities rely on higher-cost energy sources. In some provinces, electricity costs per unit of energy can be several times higher than natural gas. In Alberta, for example, electricity costs approximately $84.99 per gigajoule compared to $13.06 per gigajoule for natural gas. Similar cost differences exist in Ontario and Saskatchewan.
For households, these differences are not abstract. They directly affect monthly bills, financial stability, and quality of life. In some communities, heating costs can exceed $1,000 per month during winter periods, particularly where homes rely on propane or electric resistance heating.
The issue extends beyond households. Reliable and affordable energy is also necessary for economic development. It is difficult to attract businesses, support local manufacturing, develop food production facilities, or expand community infrastructure when energy costs are high and unpredictable.
Affordable energy is not simply a household issue. It is foundational infrastructure for community growth.
“Affordable energy is not simply a household issue. It is foundational infrastructure for community growth.”
The infrastructure gap
One of the most important realities shaping this issue is that many communities are already close to natural gas systems.
Utilities across Canada have identified projects where Indigenous and rural communities are located near existing infrastructure but remain unserved because expansion projects fail regulatory economic tests. These tests are designed to ensure that utility expansions can recover their costs from future customers over a defined period.
The logic behind these rules is understandable. Utilities are regulated monopolies, and regulators are responsible for protecting existing ratepayers from subsidizing uneconomic expansion.
The challenge is that many rural and Indigenous projects come very close to meeting these requirements but still fail because of geography, lower customer density, or the upfront cost of extending infrastructure over longer distances.
In practice, this means projects that could significantly reduce household energy costs and improve reliability are often unable to proceed because they fall short of strict cost recovery thresholds.
The result is a structural gap between communities that are technically reachable and communities that are economically connectable under current rules.
Reliability matters too
Affordability is only one part of the discussion. Reliability and energy security are equally important, particularly in northern and rural regions where communities may depend on delivered fuels.
Propane and heating oil systems rely on transportation networks that can be affected by weather, road conditions, and supply disruptions. In remote areas, winter roads and seasonal access can create additional challenges. During periods of extreme cold, these risks become even more important.
Pipeline-delivered natural gas offers a different model. Once infrastructure is in place, energy can be delivered continuously through an underground network that is less exposed to transportation disruptions and severe weather events.
For communities, this can improve resilience while reducing dependence on trucked-in fuel deliveries.
This is particularly important for critical infrastructure such as schools, community centres, healthcare facilities, wastewater systems, and emergency shelters, all of which depend on stable and reliable energy systems to operate safely year-round.
“Affordability is only one part of the discussion. Reliability and energy security are equally important, particularly in northern and rural regions where communities may depend on delivered fuels.”
Canadian examples already exist
Canada already has examples showing how natural gas expansion can improve affordability and support local economic development.
In Red Lake, Ontario, a natural gas expansion project supported by federal funding helped extend service to the community. Residential customers who switched from higher-cost fuels reportedly reduced their heating costs by between 50% and 70%.
In Saskatchewan, the connection of Zagime Anishinabek First Nation helped support greenhouse development and local economic activity. Reliable energy access enabled infrastructure that would have been difficult to operate economically using higher-cost fuels.
In British Columbia, Pacific Northern Gas and Indigenous communities have explored opportunities that go beyond household heating alone. One example involves the Kitselas First Nation, where existing natural gas infrastructure could support greenhouse operations, community facilities, and future wastewater infrastructure through local heat and power generation.
These examples demonstrate that natural gas access is not only about lowering household bills. It can also help enable long-term economic development and community infrastructure.
The role of government
A key point often missed in discussions about rural energy infrastructure is that many projects do not fail because there is no demand or because utilities are unwilling to build them.
In many cases, projects fail because they are only partially uneconomic.
Utilities and communities may already be prepared to proceed. Infrastructure routes may already be identified. Capital may already be available. But the remaining portion of the project cost that cannot be recovered through regulated rates prevents construction from moving forward.
This creates a role for targeted public policy.
Canada has already recognized the importance of enabling infrastructure through programs such as the Universal Broadband Fund, which treats internet access as a prerequisite for economic participation in rural and remote communities.
Energy infrastructure should be viewed through a similar lens.
Reliable and affordable energy enables households to lower costs, businesses to operate competitively, and communities to pursue economic growth. In many cases, relatively modest public contributions could help close the final funding gap needed to make projects viable.
Importantly, this does not require replacing provincial regulatory systems or overriding utility oversight. Existing regulatory frameworks would continue to determine project viability and customer protections. Federal support could instead be designed to complement those systems by helping address the portions of project cost that current economic tests cannot accommodate.
Looking forward
Canada is increasingly focused on affordability, energy security, economic growth, and infrastructure development. Rural and Indigenous energy access sits at the intersection of all four priorities.
Natural gas infrastructure already plays a central role in Canada’s energy system, providing reliable and affordable energy to millions of Canadians every day. Extending that access to nearby Indigenous and rural communities represents a practical opportunity to improve affordability and reliability while supporting long-term community growth.
The projects already identified across the country demonstrate that this is not a theoretical discussion. Communities, utilities, and infrastructure pathways already exist. What remains is finding ways to bridge the final gap that prevents projects from proceeding.
For many Indigenous and rural communities, access to affordable and reliable energy is not simply about heat. It is about economic participation, resilience, and the ability to build for the future.
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.
Ultimarii Ltd. is a Canadian-built, AI-enabled regulatory intelligence platform serving government and highly regulated industries, including energy, utilities, mining, and infrastructure. We transform complex, document-heavy regulatory processes into structured, auditable workflows that improve speed, consistency, and decision quality using advanced AI and curated regulatory data. Our platform is purpose-built for government environments, with Canadian data residency, role-based access controls, audit logging, and alignment with federal security and AI governance standards.
Where is your company located?
Ultimarii is headquartered in Calgary, Alberta, at the heart of Canada’s energy sector. Founded by professionals with deep roots in Alberta’s legal and regulatory landscape, Ultimarii serves clients across the energy, utility, mining, and legal industries throughout Canada and beyond. The company’s team spans software development, machine learning, data science, and regulatory expertise — all working together to fast-track compliance and reduce bureaucratic friction for professionals in highly regulated industries.
How many employees do you have?
Ultimarii is a lean and growing team of approximately 30 professionals, bringing together legal professionals, regulatory specialists, software engineers, ML scientists and data specialists. All united by a shared mission to reduce friction in highly regulated industries to ensure we can build Canada faster.
What are the company’s priority over the next five years?
Expand our reach across North America, serving project development around the globe. We are building the world’s largest and most robust regulatory reference dataset and the largest suite of regulatory specific AI agents to support the critical workflows energy companies manage every day.
What opportunities and challenges does your company face?
Ultimarii’s greatest opportunity is helping Canada’s energy sector move faster at a moment when the world needs dependable Canadian energy, resilient infrastructure, and clearer pathways to project development. One challenge is that large enterprises adopt AI carefully. Security, change management, trust, and workflow integration matter as much as the technology itself. Our focus is on turning that adoption challenge into an advantage by delivering practical, enterprise-ready AI that fits how regulated energy teams actually work.
In your opinion, what will be the role of natural gas in the next 50 years?
Natural gas will increasingly be judged not just by its emissions profile, but by the role it plays in a stable and responsible energy system. Over the next 50 years, we see evidence that it will support reliability as power demand rises, enable industrial activity that cannot easily be electrified, and provide energy security to allies through LNG. The sector’s challenge and opportunity will be proving that gas infrastructure can be developed faster to meet the growing demand.
At CERAWeek 2026, the message was clear: countries that lean on reliable, affordable energy with resilient delivery systems like natural gas will lead at home and support allies abroad.
By Susanna Zagar, President & CEO, Canadian Gas Association
CERAWeek isn’t widely known outside the energy sector, but it should be. Now in its 44th year, this premier global gathering in Houston brings together more than 10,000 participants, including government leaders and industry voices from 89 countries, to discuss what’s changing—and what comes next.
In conversation after conversation this week, one point kept surfacing. Energy is no longer discussed only as an environmental or market issue. It’s discussed as a matter of security and competitiveness, with a firm bottom line: the jurisdictions best positioned to attract investment, support industrial growth and strengthen resilience will be those that can deliver the energy people and businesses need.
That is as true for Canada as it is anywhere else. Canada’s ability to deliver for our allies starts with our ability to deliver at home. We would be wise to develop a clear strategy for natural gas – one that is communicated regularly and can serve to benefit both governments and industry as they seek to attract capital to Canada.
What is also clear is that the conversation has moved beyond “all of the above” to something more urgent: we will need MORE of the above. Demand is not waiting. Every credible pathway points to the need for more supply, more infrastructure and more capacity across the system, starting with what we can deliver here at home.
“Demand is not waiting. Every credible pathway points to the need for more supply, more infrastructure and more capacity across the system, starting with what we can deliver here at home.”
In that context, natural gas is not peripheral. It is central to meeting the moment.
Across Canada, the natural gas delivery industry meets 40 per cent of the country’s energy needs through a network that serves more than 7.6 million customer locations. This is a system built for Canadian conditions, one that provides scale, storage and reliability, and positions Canada to both meet domestic demand and contribute to global energy security.
What I have also heard this week is that pressure on the broader North American energy system is only increasing, which means we must permit and build faster to meet consumer demand. All of this is part of a much more practical conversation than the one we were having even a few years ago. The question is not simply what kind of energy future we aspire to. It is whether our systems can deliver affordability, reliability and resilience while that future is being built.
We’re now hearing from Canadian leaders that the future can be built on the shoulders of natural gas. As Minister Hodgson and others have underscored, “energy security is national security.” His recent message is also a welcome signal of ambition: “We will win this race. We will only win it with natural gas.” That clarity is important and worth recognizing. Natural gas is a great enabler—powering AI, supporting onshoring and delivering affordable, reliable energy. But it cannot be treated simply as an export opportunity. Canada must align domestic policy to unlock existing resources and infrastructure to support affordability, economic growth and system resilience.
Canada is uniquely positioned with abundant natural gas resources and an extensive delivery network. That advantage should be part of how we think about resilience and economic strength here at home.
Natural gas underpins affordability. It supports reliability. It enables economic growth. That role should be clearly recognized and supported, not only in global forums like CERAWeek, but in the policies and decisions we make at home on behalf of Canadians.
“Natural gas underpins affordability. It supports reliability. It enables economic growth.”
Canada has an opportunity to approach this moment with confidence and pragmatism and speak to natural gas as the backbone of the energy system that it already is today. If the conversations at CERAWeek are any guide, the decades ahead will ask more of every part of the energy system, not less.