Access to reliable and affordable energy is a basic requirement for the growth and success of rural, remote, and Indigenous communities. Across Canada, there are many identified natural gas connection projects that could lower household energy costs, improve reliability, and support local economic development. However, under current provincial regulatory frameworks, these projects must generally be financed through the customers served by the expansion, which can make them uneconomic in smaller or more remote communities.
Targeted federal support could help close that gap and enable projects that would otherwise not proceed. This would be consistent with the federal government’s existing role in supporting other forms of enabling infrastructure in rural Canada, including roads, broadband, and community facilities. This document provides background on the issue, explains the policy and regulatory context, and sets out options for federal action to help close the gap.
(April 2026)