National Electricity Agenda misses the mark on rural and the North: Canadian Propane Association

OTTAWA, MAY 14, 2026 – Representing 400 members across Canada, the Canadian Propane Association is disappointed in the federal government’s misunderstanding of the critical role that affordable, lower-emission propane plays in Canada’s economy and energy system.

The National Electricity Agenda missed the mark in meeting the needs of rural and Northern Canadians and the vital role Canada’s propane industry has in supporting reliable and affordable energy as part of the federal government’s electrification policy.

“Affordable and versatile, propane, more than any other fuel, ensures Canadians have the energy they need when they need it and where they need it,” says CPA President and CEO Shannon Watt. “In many parts of Canada, propane costs less than half the price of diesel and heating oil, making it a practical and cost-effective energy option for households, farms, businesses, and remote communities.”

Canada’s energy system is diverse, and Canadian propane is essential to Indigenous, rural, and remote communities and to key sectors including agriculture, transportation, construction, manufacturing and emergency preparedness.

The Canada Strong: A National Strategy for an Electrified Canadian Economy commits to transitioning up to one million households off propane and heating oil yet offers no recognition of propane’s role as a reliable, affordable, and lower-emission energy source for rural, Indigenous, and northern communities where electrification and natural gas is neither practical nor imminent.

“It is striking that natural gas receives its own dedicated subsection acknowledging its ‘strategic role,’ while propane, which serves many of Canada’s most vulnerable and remote populations, is reduced to a line item for displacement,” says Watt.

The strategy’s own data shows northern electricity rates are six to ten times the national average. Asking these communities to electrify without viable alternatives is not a transition – it is a burden.

With a similar emissions profile to natural gas, propane provides the same benefits but a greater reach ensuring propane can also “contribute to system stability and affordability, while also contributing to cost-effective emissions reductions.”

At a time when Canada is working to diversify its trade relationships and strengthen energy security, propane exports to Asia now account for more than 40% of Canadian propane exports — a clear sign that global markets recognize the value and strategic importance of Canadian propane.

Any discussion on energy security and affordability should acknowledge the critical role that propane plays for households, farms, businesses and communities across Canada. We are looking forward to engaging with the government and meeting its goals to ensure affordable and reliable energy is available to all Canadians.

Fast Facts

• Propane emits approximately 38% fewer greenhouse gas emissions than heating oil.
• Carbon intensity emissions for propane are 72 gCO₂e/MJ, which is lower than 73gCO₂e/MJ for LNG
• Propane emits 98% less particulate matter than diesel.
• Canada exports approximately 337,000 barrels of propane per day, demonstrating strong domestic supply.
• Propane can be stored onsite indefinitely, providing reliable energy during outages and extreme weather.

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For More Information, contact:

Tammy Hirsch, Sr. Director, Communications and Marketing: Email: media@propane.ca