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Canada Pitches More Natural Gas to Support US LNG Exports
Energy Minister Tim Hodgson Says Added Flows Could Aid Gulf Coast LNG and AI Power Demand
Canadian Energy Minister Tim Hodgson pitched increasing natural gas flows to the U.S., a move aimed at boosting LNG exports from the Gulf Coast and meeting rising power demand from artificial intelligence data centers.
In an interview on Bloomberg Television, Hodgson said he had a 鈥渨onderful conversation鈥 with U.S. Energy Secretary Chris Wright and Interior Secretary Doug Burgum during the CERAWeek conference hosted by S&P Global in Houston.
Canada ships 8 billion cubic feet per day of gas to the U.S., helping underpin 20 billion cubic feet per day of American liquefied natural gas exports, Hodgson said March 24.听
鈥淲e talked about how we could help send more gas down to help you export more off the Gulf Coast and to help you with your AI strategy,鈥 Hodgson said. 鈥淥bviously a key component of the AI race is building more data centers. That requires more natural gas. We can provide that gas.鈥
The Middle East conflict has tightened global energy markets, including LNG, after Iranian missile strikes caused听extensive damage听to Qatar鈥檚 Ras Laffan complex. Germany鈥檚 economy minister is now听urging utilities听to lock in additional long-term LNG supply, including from non-U.S. producers.
Hodgson also said he assured Wright and Burgum that Canada is doing everything possible to keep oil flowing amid the war.
The country has听committed听23.6 million barrels toward the International Energy Agency鈥檚 emergency release of 400 million barrels. Canada doesn鈥檛 maintain strategic reserves as a net oil exporter, but companies have reason to offer more supply while U.S. crude trades around $90 a barrel after briefly passing $100.
The Canadian government asked oil sands producers to delay planned second-quarter maintenance to maintain output, Hodgson said.
A spokesperson for the minister later clarified that while delaying maintenance was discussed with industry, it was deemed unnecessary at this time to reach the IEA target.
Major oil sands producers have听not announced听any turnaround delays.听
Hodgson also said he is in 鈥渋ntense discussions鈥 on working out the details of a听deal听with Alberta that would see federal backing for a new oil pipeline to the west coast in exchange for provincial commitments on carbon pricing and the Pathways carbon-capture project.
A 2025 memorandum of understanding sets an April 1 deadline to reach agreements on carbon pricing and a framework for the construction of Pathways. Alberta Premier Danielle Smith has suggested that deadline is听unlikely听to be met.
