Thank you, Chair.
Hello, committee members.
My remarks today will focus on two areas. The first is setting a new narrative for Canadian energy that aligns with the energy trilemma, and the second is a proposal to leverage Canada's vast natural gas infrastructure system.
The Canadian Gas Association members deliver natural gas through 600,000 kilometres of pipeline infrastructure that connects over 20 million Canadians. This infrastructure spans eight provinces and one territory, and through it we deliver 40% of Canada's energy needs, nearly double that of the electricity system.
As energy companies serving all forms of consumers, from large industries to homeowners, we are acutely aware of Canada's productivity and affordability challenge. Energy as an input cost forms part of that productivity equation. We witness first-hand the economic benefit of connecting Canadians homes and industries to natural gas. More affordable energy means improved bottom lines, more disposable income and economic growth. The Government of Canada has an opportunity to put the conditions in place to bring affordable natural gas and renewable gases to more Canadians.
Where do we start? First, we need to work together as a nation to get the message right. I'm just back from meetings in Cairo, where dozens of countries met to discuss the energy and investment landscape around the world. The discussion centred on opportunities in the United States, in Europe and in developing countries. Canada was simply not on the radar.
How do we change this? It starts with a new narrative, a narrative that reflects our energy strengths as a nation and a narrative that speaks positively about our resources, our domestic industry and our infrastructure.
What is the new narrative? It's one that speaks to and balances each element of the energy trilemma: affordability, reliability and sustainability. Balancing the trilemma must be at the heart of Canada's energy and environmental policy and decision-making. Too much focus on any one source of energy or one aspect of the trilemma will lead to unintended consequences.
We must recognize that the world is in an era of energy addition. We need more energy, not less. Our narrative must be accompanied by durable policy that attracts capital. Our allies are vying for investment the same way that we are.
The next five years will be pivotal with the reshoring of manufacturing and the AI data centre opportunity. Canada should be pursuing both with vigour, and natural gas has a central place.
If we get the message right and we get the policy right, how can we leverage the gas system?
Hundreds of thousands Canadians live close to but are not connected to the gas system. They rely on higher-cost and higher-emitting fuels, such as heating oil and propane. To remedy this, we recommend a public-private partnership to co-fund the extension of the gas infrastructure to data centres, farms, rural communities and indigenous nations.
This would not be the first instance of a partnership. There have been several of them over the years, dating back to the 1980s. A partnership would allow the energy delivery company to connect communities in close proximity to the gas system, often less than 10 kilometres away.
We have seen leadership in Ontario. where the natural gas expansion program funded by the Government of Ontario will connect 17,000 homes and businesses to the gas system in 59 communities. The end result is 30% to 50% savings on energy costs. A federal program could expand this opportunity for the rest of Canada, lowering heating costs and putting money into the pocketbooks of households.
The industry stands ready to bring forward shovel-ready projects, along with capital and a strong Canadian workforce.
In the coming weeks, the CGA will be releasing a national policy document that outlines several gas energy opportunities for Canada, including the one I've mentioned today. We look forward to advancing this and other opportunities in the coming weeks and months.
Thank you.