FINWIRES · TerminalLIVE
FINWIRES

US-Canada Natural Gas Trade Gains as Higher Prices Lift Energy Flows, EIA Says

By

The value of natural gas and electricity traded between the US and Canada rose in 2025, even as overall energy trade between the two countries declined, driven by a rebound in natural gas prices, Energy Information Administration strategists said in a note on Wednesday.

The EIA analysts said that the total value of energy trade between the two countries fell 11% to an estimated $137 billion in 2025, reflecting lower values for other major energy commodities.

Sean Hill, senior economist at the EIA, said that Canada's energy exports to the US are subject to a 10% tariff. However, Hill said that some crude oil volumes may be exempt from tariffs if they qualify for the US-Mexico-Canada Agreement preference.

Natural gas accounted for about 8% of the total value of bilateral energy trade, with stronger prices driving higher trade values despite only modest increases in volumes.

US natural gas imports from Canada averaged 8.6 billion cubic feet per day in 2025, up 1% from the previous year. The value of those imports climbed 52% from 2024 as natural gas prices recovered from earlier lows.

US exports of natural gas to Canada also increased, rising 4% to an average of 2.8 Bcf/d. The value of those exports jumped 77% to $2.6 billion in 2025, the EIA said.

Most natural gas traded between the two countries is transported by pipeline. The agency said imports from Canada enter the western and central US, and American exports are largely delivered from northeastern states into Ontario.

Electricity trade also recorded gains in value. Total cross-border electricity trade reached $3.2 billion in 2025, with imports from Canada accounting for 67% of the total.

The EIA said that while the US Northeast has reduced its reliance on Canadian electricity imports in recent years, a new transmission line that entered service in January 2026 could support higher imports from Canada in the future.

The US and Canada maintain one of the world's most integrated energy trading relationships, with cross-border flows of crude oil, natural gas, electricity and refined products underpinning energy security in both countries.

Related Articles

Commodities

US Crude Oil Inventories Rise, API Says

Data from the American Petroleum Institute revealed Tuesday that US crude oil inventories increased by 2.69 million barrels in the week ended July 31, following a 3.3-mmbbl draw the previous week, and compared with analysts' estimate of a 2-mmbbl decline, according to a Bloomberg-compiled survey.The oil market now awaits the US Energy Information Administration's petroleum inventory report, scheduled for release on Wednesday.

Commodities

Archrock Q2 Highlights Reaffirmed 2026 Growth Capex, Multiyear Investment Plan

Archrock (AROC) reported Q2 earnings Tuesday, reaffirming its 2026 growth capital spending outlook and introducing a multiyear expansion plan as strong demand for natural gas compression services supported its long-term outlook.Contract compression fleet utilization remained high.Total operating horsepower at June 30 was 4.516 million hp, down from 4.651 million hp a year earlier, while average operating horsepower during the quarter increased to 4.514 million hp from 4.467 million hp.Total available horsepower declined to 4.784 million hp from 4.843 million hp, and utilization was 94.4%, compared with 96% a year earlier.Archrock signed a long-term agreement with an existing strategic customer covering about 665,000 hp of compression equipment. The contract includes an eight-year base term with a two-year extension option, according to the company.The company reaffirmed 2026 growth capital expenditures of $250 million to $275 million and introduced cumulative growth capital investment of $1.4 billion to $1.6 billion for 2027 through 2030 to expand its compression fleet."The compression market outlook remains highly constructive, driven by durable natural gas demand and a structurally tight compression market continuing to support our expectations for robust long-term growth," said Brad Childers, Archrock's president and chief executive officer.

$AROC
Commodities

US Natural Gas Update: Prices fall on Milder Weather Forecasts, Ample Supply

US natural gas futures traded near the bottom of the session range in late Tuesday trading as a milder weather outlook and expectations of even stronger supply outweighed support from near-term cooling demand.The front-month Henry Hub contract and the continuous contract both fell 3.31% to $2.689 per million British thermal units.According to Energy Buyers Guide, the latest forecast revisions turned milder after an expected period of intense heat this weekend and into early next week, which is still projected to support elevated cooling demand. However, forecasts for the Midwest and East moderated considerably beyond that period, reducing expectations for sustained heat through the middle of August and weighing most heavily on nearby futures contracts.Additional pressure came from supply-side developments. Barchart said Energy Transfer announced that the Hugh Brinson Pipeline is expected to operate at its full transportation capacity of 1.5 Bcf/d by Sept. 1, allowing more natural gas to move from the Permian Basin to the Henry Hub pricing point in Erath, Louisiana. The expanded capacity is expected to increase domestic gas supplies.The accelerated startup of the Hugh Brinson Pipeline marks a significant shift for West Texas natural gas markets, Natural Gas Intelligence said. The additional takeaway capacity could help relieve trapped Permian gas supplies that have kept Waha benchmark prices below zero for much of this year.Gelber & Associates said US dry gas production has eased to a still strong 110.5 Bcf/d, while Canadian imports have held near a two-week low of 4.8 Bcf/d.Demand rose by 2 Bcf/d on hot weather in the middle of the country to 80.2 Bcf/d, Barchart said, citing BNEF data. Celsius Energy said power demand was pegged around 44.8 Bcf/d on Aug. 2.LNG feedgas demand has remained steady at around 18.4 Bcf/d, below capacity due to maintenance work at the Freeport LNG terminal expected to be completed around the end of this month.