Thank you, Chair.

A previous minister of natural resources speaking to my board of directors a few years ago said, “Wouldn't it be great if we had a national electricity link coast to coast?” I said to him, “Minister, we have one in the TransCanada mainline.”

The mainline, of course, is one of several extraordinary pipeline networks across the continent. The TC Energy system, of which it is a part, and the Enbridge system are two massive infrastructure networks owned by Canadian pipeline companies linking millions of North Americans to the energy they need for a range of services. There are numerous other systems as well.

My response wasn't the one the minister wanted, and I dare say it's because he, like many Canadians, too often engages in an electricity conversation as though electricity alone can meet all of Canada's energy demands and electricity isn't dependent on the broader energy system. Of course, this isn't true. Electricity is a technology, not an energy source, and it uses a variety of energy sources. We need electrons to run a bunch of things, but that's because they enable other technologies, and we need energy sources to make electrons.

I'm going to talk for a few moments today about one of those sources, natural gas, and how essential it is to the electricity system and indeed to the well-being of the country as a whole.

Canada's natural gas infrastructure is extensive, with over 600,000 kilometres of pipeline delivering energy to two-thirds of Canadians and storage facilities across the country within that system, altogether meeting nearly 40% of Canada's energy needs—more than double the contribution of electricity. This extensive infrastructure and storage capacity allows the delivery of large volumes of energy reliably, especially during peak demand periods or emergencies, and this includes electric energy. Already a key part of the power generation mix in many provinces, natural gas-fired electricity has increased by an average of 4% every year since 2018, at a time when we are contemplating serious constraints in the power system.

The reliability of the gas system and why that matters to the electric system are underscored by events like the polar vortex of January this year, when natural gas delivered the equivalent energy of 110,000 megawatts of power, or nearly 10 times the record electric peak in Alberta. Approximately 50% of that came from natural gas in storage—a battery of unparalleled scale. In other words, demand went through the roof, and the natural gas tap was turned on to ensure reliable energy for heating needs and reliable electricity. Without it, the electrical system would have failed.

I mention the draw on storage during Alberta's cold snap. That storage strength exists there and across the country. The Dawn Hub in Ontario is one of the largest integrated storage facilities in North America. It's a massive battery of over 285 billion cubic feet of natural gas, or the equivalent of roughly one-tenth of the total gas used in the country in a year. There's no comparable battery storage, and the hub provides unmatched flexibility and reliability for our energy system. That is critical, especially in winter, when estimates suggest that the heating load met by natural gas would require the equivalent of as many as 90 nuclear plants.

In Ontario, the Independent Electric System Operator understands the value of natural gas. The organization anticipates a shortfall of electricity by the late 2020s and has identified natural gas and renewable energy sources that are backed by natural gas as essential to meeting the need.

From an affordability perspective, natural gas is unparalleled. In 2023, the delivered cost of electricity was more than three times that of natural gas, and that's even with carbon taxes. Also, electricity prices are rising. In British Columbia, there's an announced annual increase of 6.4%. In Nova Scotia it's 6.5%, and in Newfoundland it's 10.5%.

Energy affordability affects the overall cost of living, not just because of the price of energy for direct use—as electricity, as fuel for transportation or as energy for heating—but also because the cost of energy affects the cost of absolutely everything else we need. The growing threat to affordable energy, something Canadians have always taken for granted, is leading to a growing reality of energy poverty, something we should never have to contemplate in a country so rich with energy resources.

Natural gas is the most cost-effective energy source available to Canadians. The average cost of delivering energy through natural gas infrastructure is roughly $68 per megawatt hour compared to over $560 per megawatt hour for electricity. This cost-effectiveness makes natural gas a vital component of our energy strategy, helping to keep energy costs affordable.

Finally, natural gas is an acceptable energy source that aligns with Canadians' interests and concerns. Its environmental footprint is small and steadily being reduced, as the industry continually innovates and invests in emission-management techniques, efficiency improvements and new fuels like hydrogen and RNG. Its infrastructure is unobtrusive, as it is overwhelmingly underground. Its safety record is exemplary. Millions rely on it and don't want to stop using it.

To conclude, I speak to remind you all of the great asset we have in our natural gas resource and our natural gas infrastructure. We are foundational to the overall energy system, and those who call for our elimination do so without reflection on the enormous risk this represents to the well-being of Canadians and even to the very electrical system that advocates seek to expand.