Natural gas has been a cornerstone of Canada’s energy mix for decades. It provides affordable, reliable, and efficient energy to millions of homes and businesses.
At the same time, as the conversation around reducing emissions grows louder, some policymakers and advocacy groups are pushing to phase out natural gas in favour of electricity and renewable energy.
The current narrative, however, overlooks the very real financial and lifestyle impacts losing access to natural gas would have on Canadians.
Natural gas does a lot more than heat
Natural gas isn’t just about keeping Canadians cozy in the winter. It fuels everyday life in ways you might not expect—from helping cook meals, keeping businesses running, and supporting essential industries across the country.
Residential use: Natural gas is essential for nearly 7.0 million Canadian households, providing reliable, cost-effective energy for heating, hot water, and cooking. It also generates electricity for appliances throughout the home—including outdoor features like backyard pools and barbecues.
Commercial use: Small businesses across Canada rely on natural gas for efficient operations. For example, restaurants use it for fast, high-heat cooking, while laundromats and dry cleaners depend on gas to power dryers and water heaters. Because natural gas is affordable, it helps businesses manage operating costs and maintain competitive pricing.
Industrial use: Natural gas is a key energy source for Canada’s industrial sector, supporting manufacturing, refining, and heavy industries. It’s used for heating in high-temperature processes and to fuel machinery in factories. Affordable natural gas helps keep production costs low, which in turn helps keep the prices of goods and services down.
Agricultural use: Natural gas supports Canadian farming by powering grain dryers, heating greenhouses, and providing an affordable input in fertilizer production. Its reliability helps farmers grow food year-round, keeping Canada’s agricultural industry productive and resilient. Without it, farmers would have to rely on more expensive and less reliable alternatives, potentially reducing output, impacting food security, and driving up prices across grocery stores, restaurants, and other food sectors.
The impacts of phasing out natural gas
Impact on affordability
Phasing out natural gas would hit Canadians in the wallet. Households that currently use natural gas for heating and hot water save between $500 and $2,300 annually compared to those using propane, electricity, or heating oil—savings that vary by region and home size.
Switching to electric alternatives comes with steep upfront costs. Replacing gas furnaces, stoves, and water heaters can total thousands of dollars, and installing a heat pump may cost more than $20,000 once you factor in the unit, installation, and necessary upgrades. On top of that, many homes would require electrical panel upgrades, which can add up to $12,000 depending on location.
These costs would be especially hard on low-to-medium income households already struggling with rising utility and housing expenses. For some, the added financial strain could lead to energy poverty—forcing them to choose between heating their home and meeting other basic needs.
Impact on reliability
Natural gas plays a vital role in keeping Canadians warm, particularly during harsh winters. With nearly 600,000 kilometres of underground pipelines, it delivers reliable energy even when extreme weather disrupts above-ground power lines. Unlike electricity and renewables, which can be prone to outages, natural gas infrastructure is built to withstand Canada’s weather.
Phasing out natural gas would place significant strain on the electrical grid, especially during peak winter demand. The grid isn’t currently equipped to handle that additional load, increasing the risk of blackouts and service disruptions. Keeping natural gas in the mix helps balance demand and ensures Canadians have access to dependable energy when they need it most.
Losing natural gas would also mean fewer energy options. Many Canadians prefer gas for its instant, controllable heat—particularly in the kitchen. Without it, households would be forced to adopt electric systems that may not suit their needs or perform as reliably in cold conditions. The result: reduced energy choice, increased costs, and a less reliable energy future.
Impact on small businesses and local economies
The loss of natural gas wouldn’t just affect homeowners—it would also have serious consequences for small businesses and local economies.
Across Canada, natural gas supports over 412,000 jobs and makes up 7.2% of our economy. It powers the places you count on, like your local bakery, favourite restaurant, or dry cleaner. If those businesses are forced to switch to more expensive energy sources, you’ll see it in higher prices—or even in fewer places staying open
Without natural gas, families could face steeper home energy bills, and communities could lose jobs and services. Natural gas also helps industries like farming, healthcare, and manufacturing stay efficient and competitive—keeping costs down across the board.
And most Canadians agree: 74% believe natural gas is important to our economy.
Natural gas is reliable, affordable, and already working for millions of Canadians. Losing it wouldn’t just be a lifestyle change—it would come with real costs for all of us.
The bottom line: Natural gas is essential
Phasing out natural gas in Canada would carry significant economic and practical consequences. From rising energy costs to costly home upgrades and fewer energy options, the impacts would be felt across households, businesses, and entire communities.
Natural gas continues to be a reliable and affordable energy solution—especially in a country where resilience during extreme weather isn't just important, it’s critical.
A diverse energy mix is essential. It allows us to meet environmental goals while addressing the practical needs of Canadians.
Preserving energy choice supports economic resilience and ensures that Canadians have the freedom to choose the energy solutions that best suit their homes, businesses, and lifestyles.
If, like us, you believe in the value of having the choice to use natural gas in Canadian homes, reach out to your elected officials directly with our easy letter-writing tool.
