Wall Street Journal Opinion | How to Make North American Energy Great Again
Opinion column by François Poirier published in The Wall Street Journal on February 3, 2025As Canada, Mexico and the U.S. hash out trade disputes, they shouldn’t lose sight of a vital unifying opportunity.
Although tariffs dominate headlines across North America, we shouldn’t lose sight of an important economic opportunity that can unite the U.S., Canada and Mexico: unleashing energy. As the only natural-gas pipeline company with assets in all three countries, we know that beneath the politics and noise of a “trade war,” this is common ground. Our collective strength on energy provides a chance to expand our economies, advance national security and reduce global emissions.
The global energy landscape has changed dramatically in recent years, largely in a way that advantages North America if nations are willing to act. Russia’s 2022 invasion of Ukraine marked a turning point for energy markets and governments. In a short time, U.S. exports of liquefied natural gas to Europe more than doubled. America should take pride in the influence of its energy dominance on world affairs.
The opportunity for Canada and Mexico to follow suit is close at hand. While the U.S. doesn’t currently have LNG export facilities on the West Coast, Canada is expected to begin exporting LNG from British Columbia later this year. Shipments from Mexico’s West Coast—sourced from the American southwest’s Permian Basin—are set to launch in 2026.
But the North American energy landscape also has its challenges. At TC Energy, we move roughly 30% of the natural gas consumed in North America, and our pipelines are near capacity with record deliveries to power plants last quarter. Demand is surging across the continent and is likely to accelerate further given President Trump’s vital announcement of significant new investments inartificial-intelligence data-center infrastructure. Clearly, additional pipeline capacity will be needed.
While the U.S. has been successful in building out enough export capacity to become the world’s largest LNG exporter, Canada is new to international LNG trade off the continent. Canada’s lack of access to markets other than the U.S. has allowed Americans to buy Canadian energy at a discount, compared to prices elsewhere. Canada has provided the U.S. with increased supplies of affordable and reliable oil and natural gas for decades. Ottawa would have been much better positioned to handle trade negotiations in general—and less dependent on the U.S. specifically—if LNG or other export pipelines and infrastructure had been operational years ago.
Nevertheless, Canada’s emerging LNG sector can help advance energy security in Asia and reduce the region’s dependence on Russian gas imports—which will help support U.S. eff orts to disrupt Russian influence. While the U.S. has been able to expand its sales in Europe relatively easily, shipping to Asia is much harder. Most shipments of LNG from the Gulf Coast to Asia must travel roughly 20 days through the Panama Canal, compared with the roughly 10 days it will take from Canada’s West Coast. Furthermore, drought conditions are causing bottlenecks in the waterway, underscoring the strategic importance of direct shipping routes.
As the U.S., Canada and Mexico seek to resolve serious issues relating to illegal immigration, drugs, national security and defense, unity around energy will only become more important. According to the U.S. Energy Information Administration, on their current course Canada, the U.S. and Mexico will more than double their LNG export capacity by 2028. Washington’s, for now paused,10% tariffs on Canadian energy reinforce the urgency of coming to an agreement that will benefit consumers across the continent. Increased engagement among North America’s leaders will prove helpful.
Mr. Trump, Ms. Sheinbaum and Canada’s next prime minister have a historic opportunity to unite our nations’ strengths by refocusing energy policy for the benefit of workers, communities and our collective security. By working together across North America and supporting the free flow of energy throughout the continent, we can achieve energy security, affordability and reliability more effectively than any country could achieve on its own.