Pipeline Industry in Canada

Supporting Canadian Pipelines

Pipelines are a critical part of Canada’s energy infrastructure, supplying countless millions of consumers with the oil and natural gas they need. Even in provinces like British Columbia and Quebec where most electricity is generated by hydro, oil and gas pipelines remain critical to supplying the energy needed to provide heat for buildings, inputs for industrial processes, and fuel for vehicles to name a few examples.

Today, Canada sends a vast majority of its oil and gas to the U.S., which essentially has a monopoly on our conventional energy exports. This monopoly allows our southern neighbour to buy these commodities at a severe discount, removing tens of billions of dollars from the Canadian economy every year.

Thankfully, new projects like the Trans Mountain Expansion (TMX) and Coastal GasLink (CGL) are allowing Canada to further diversify its energy export markets and maximize the value of our resources, but not anywhere near the pace needed to become independent from the U.S. These new projects are a shining example of the massive economic benefits afforded to Canadians by building major oil and gas pipelines, injecting billions of dollars into our economy, creating thousands of good-paying jobs, supporting economic reconciliation with Indigenous communities, and reducing the price discounts on our energy.

Despite growing global demand for oil and natural gas, Canada has had a difficult time getting new major transmission pipelines built. Besides TMX and CGL, Canada has seen several projects cancelled over the past several years, keeping us highly dependent on the U.S. If built, these pipelines would have helped Canadians secure our economic future and independence once and for all.

Top Pipeline Articles:

• Quebecers Support Revival of Two Oil & Gas Pipelines: POLL
• DEBATE: Should Canada Build New Pipelines to Secure its Economic Future?
• Why Was the Northern Gateway Pipeline Cancelled?
• 79% of Canadians Want New Oil & Gas Pipelines from Sea-to-Sea: POLL
• Why Was the Energy East Pipeline Cancelled?

See all of Canada Action's "pipeline" related blogs today!

Canada Needs New Pipelines

When talking about the pipeline industry in Canada, we must have balanced, fact-based and honest discussions about the good that these projects do for our country. This is not an either-or conversation, but one that must recognize the benefits of pipelines for Canadians, their exemplary performance record, and the leading regulatory framework we have in place to manage operations safely.

This conversation also must consider a global context. Several major oil and gas producing nations continue to build oil and gas pipelines rapidly due to projected energy demand growth for years to come. Meanwhile, crises resulting from geopolitical tensions have dramatically changed international energy markets, perhaps forever. Many democratic countries like Japan, South Korea, and Europe are looking to buy supplies from countries with similar values seen as more stable and reliable, like Canada.

Canada has an incredible opportunity to step up and become the global energy superpower the world needs. Our closest trading partners and allies are asking for our energy; we need the will to say “yes” to new pipelines which will help us build a stronger economy, diversify our export markets, and become truly independent from the economic whims of our single largest trading partner.

Canada's Pipeline Industry: Facts

• Canada is home to an estimated 840,000 kilometres (km) of pipelines ^[1]
• 100% of Canadian natural gas exports and 97% of its oil exports are shipped to the United States where it is bought at a discount versus international benchmark prices ^[1]
• The price discount on Canadian natural gas is said to cost the Canadian economy $23 million per day, or more than $8 billion in lost revenues every year (2018) ^[2]
• The price discount on Canadian oil is said to cost the Canadian economy $50 million per day, or more than $13 billion (2018) ^[3]
• With the now-complete TMX, the oil price discount has been reduced, adding an extra $10 billion to the Canadian economy in 2024 ^[4]
• Canadian pipeline infrastructure transports more than 1.3 billion barrels every year ^[5]

Join Us Today!

Anti-development obstructionists oppose all pipelines in Canada, citing decreasing oil and gas demand despite major energy organizations projecting global consumption of both commodities to continue to hit new record highs for years to come. The economic opportunities lost for Canadians when projects like Energy East and Northern Gateway were cancelled are immense. These pipelines would have created vast opportunities for Canadian workers and families while allowing us to secure our economic future.

The only winners when Canadian pipelines are cancelled or stalled are other major oil and natural gas producing nations, who are more than happy to meet growing global demand. Often, these producers are much less transparent and regulated than in Canada.

By supporting new pipeline projects, Canadians can start standing up for what is good for our country, Indigenous communities, our closest allies and trade partners, and resource security in general. These major infrastructure projects have immense benefits, allowing us to fund more critical social programs and public developments while decreasing the discount we take on our oil and gas.

A reminder that a strong majority of Canadians support diversifying our export destinations — that means urgently building pipelines, powerlines, ports, railways, roads and airport infrastructure. pic.twitter.com/8Q6eY0bsXR

— Canada Action (@CanadaAction) April 21, 2025

SOURCES:

_{1 - https://natural-resources.canada.ca/energy-sources/fossil-fuels/pipelines-across-canada}

_{2 - https://financialpost.com/commodities/energy/natural-gas-albertas-forgotten-commodity-quietly-suffering-through-steep-pricing-discounts}

_{3 - https://www.cbc.ca/news/canada/calgary/canadian-oil-price-discounts-impact-1.4901147}

_{4 - https://www.cbc.ca/news/canada/calgary/trans-mountain-pipeline-expansion-tmx-revenues-st-arnaud-1.7434823}

_{5 - https://natural-resources.canada.ca/sites/nrcan/files/pipeline-facts/Key%20Facts%20on%20Canada's%20pipelines_8_5x14-access_e.pdf}