This Week in Oil & Gas — Ottawa (#36, 2026)
Ottawa extends federal fuel excise tax relief to 2027; Canadian LNG project secures third global offtake deal; G20 and APEC meetings expand energy partnerships; StatsCan indexes signal rising energy prices; Major federal investment targets clean fuels innovation.
September 13, 2026 to September 19, 2026
This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news concerning oil and gas production, wells, drilling, petroleum and fuels refining, pipelines, LNG, hydrocarbons, and all Landman fans. Once a week, we break down the most important updates in this space in under five minutes.
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📋 In This Week's Newsletter
• 🏛️ This Week's Parliamentary Calendar
• 🇨🇦 Federal Government News
• 🗺️ Provincial Government News
• 📚 What We're Reading This Week
This Week's Parliamentary Calendar
- Environment and Sustainable Development Committee to review Bill C-244: The committee will meet on September 22 from 3:30 to 5:30 p.m. to conduct clause-by-clause consideration of Bill C-244, amending the Canadian Environmental Protection Act and Wrecked, Abandoned or Hazardous Vessels Act. Witnesses from Environment, Transport, and Coast Guard will attend.
Federal Government News
Canada extends federal fuel excise tax relief on gasoline, diesel, and aviation fuels until 2027
On September 15, the Government of Canada announced an extension of its temporary suspension on the federal fuel excise tax for gasoline, diesel, and aviation fuels, including unleaded and leaded aviation gasoline. The measure, initially implemented on April 20, 2026, results in direct savings for consumers—10 cents per litre on gasoline, 11 cents per litre on leaded aviation gasoline, and 4 cents per litre on diesel and aviation fuel. The extended suspension will last until January 31, 2027. From February 1 through March 31, the excise tax rate will be set at 50% of the regular level. Parliamentary Secretary Tom Osborne made the announcement, noting the impact on industries such as trucking, agriculture, housing, construction, and delivery. The extension comes amid global economic headwinds, new US tariffs on Canadian goods, and ongoing conflicts abroad. The government is also pursuing broader affordability measures, including the Canada Groceries and Essentials Benefit, income tax reductions for 22 million Canadians, cancellation of the consumer carbon tax, and GST relief for first-time home buyers.
Sources: www.canada.ca

Canadian LNG project signs third international offtake deal, broadening export markets
Ksi Lisims LNG, located in British Columbia and including the Nisga’a Nation as a partner, signed a Heads of Agreement with Santos for the sale and purchase of 1 million tonnes of LNG per year over 20 years. This deal, effective September 14, marks Ksi Lisims' third international agreement in 2026, following previous partnerships with Uniper and SEFE of Germany. The project, valued at $30 billion, is positioned as Canada’s second-largest LNG facility, targeting exports of 12 million tonnes annually. Federal Major Projects Office oversight began in November 2025. With projected emissions 94% below the global average, the facility is anticipated to shift Canada’s natural gas export profile: from less than 0.01% sent to non-US markets in 2024 to an estimated 55% by the mid-2030s. The project also aims to contribute to global emissions reductions of 9–14 million tonnes CO2 per year.
Sources: www.canada.ca
Canada invests $4 million in clean fuels innovation in Ontario
Natural Resources Canada, represented by Secretary of State Ruby Sahota, announced on September 15 a $4 million investment for two clean fuel research and development projects in Ontario under the Energy Innovation Program Clean Fuels Call for Proposals. Next Hydrogen will receive $2 million to develop advanced water electrolyser modules, targeting up to 95% emissions reductions versus conventional production methods. CERT Systems Inc. is awarded $2 million for technology that converts captured CO2 into ethylene, which can support sustainable aviation fuel. The technology may provide an estimated 93.8% reduction in lifecycle emissions compared to conventional jet fuel. These investments are intended to promote domestic innovation, support the clean fuels sector, and position Canada as a global leader in low-carbon energy solutions.
Sources: www.canada.ca
Canada strengthens energy collaboration with Indo-Pacific nations
Between September 8 and 11, Parliamentary Secretary Corey Hogan attended the Asia-Pacific Economic Cooperation Energy Ministers’ Meeting in China, marking the first Canadian political representation at the event in over a decade. The 21-member APEC region constitutes almost half of global trade and 61% of global GDP. Hogan advanced discussions on bilateral energy and natural resources trade markets, as well as joint security and investment programs with China, Japan, Philippines, Singapore, and South Korea. The meetings followed the January 2026 Prime Ministerial visit to China, bolstering Canada's network for trade expansion in the Asia-Pacific. Hogan also met industry stakeholders in Shanghai and Beijing and reviewed cooperative agreements on wood construction projects.
Sources: www.canada.ca
Canada celebrates opening of Atlantic Canada’s largest energy storage facilities
On September 16, three battery energy storage facilities, each rated at 50 MW/200 MWh, were inaugurated at sites in Bridgewater, Waverley, and White Rock, Nova Scotia. Jaimie Battiste, speaking for Minister Hodgson, highlighted the federal government’s $109 million investment and a $138.2 million loan from the Canada Infrastructure Bank. The installations are expected to reduce greenhouse gas emissions by about 90,000 tonnes annually, accelerate the transition from coal-fired electricity to renewables, and support grid modernization. All 13 Mi'kmaw communities in Nova Scotia are equity partners, participating through Wskijinu'k Mtmo'taqnuow Agency.
Sources: www.canada.ca
Canada strengthens global energy partnerships at G20 Energy Abundance Ministerial Meeting
Parliamentary Secretary Corey Hogan participated in the G20 Energy Abundance Ministerial Meeting in Houston, Texas from September 14–16, engaging ministers representing two-thirds of the world’s population and over 79% of global trade. Canada sought to advance international energy security and investment partnerships, meeting representatives from the European Union, India, Poland, Turkey, the UK, and the US. Canada’s bilateral merchandise trade with G20 nations accounts for over 90% of the total. Hogan also engaged with global business leaders to promote Canadian investment opportunities and reinforce Canada’s position as a reliable supplier.
Sources: www.canada.ca
StatsCan: Industrial product price index in August increases 1.3% month-over-month, 13.5% year-over-year
Statistics Canada reported on September 17 that the Industrial Product Price Index rose 1.3% from July and was 13.5% higher year-over-year. Meanwhile, Raw Materials Price Index increased 3.1% month-over-month and 22.8% year-over-year. These advances signal rising input costs for producers in the oil and gas sector, with potential implications for refinery operations and downstream activity.
Sources: www.statcan.gc.ca
StatsCan: Petroleum and coal product sales rise despite overall manufacturing decline in July
Statistics Canada’s Monthly Survey of Manufacturing for July 2026 found a 0.4% national decline in manufacturing sales, largely due to reduced sales in chemicals and food products. However, the petroleum and coal product subsector exhibited the strongest growth, indicating continued resilience within energy manufacturing.
Sources: www.statcan.gc.ca
Secretary of State Sahota to announce clean fuels funding in Ontario
Secretary of State Ruby Sahota announced an upcoming clean fuels funding announcement scheduled for September 15 in Mississauga, Ontario. Media availability followed, with details for accredited media provided via Natural Resources Canada.
Sources: www.canada.ca
Parliamentary Secretary Osborne to highlight federal fuel excise tax relief extension in Newfoundland and Labrador
Parliamentary Secretary Tom Osborne planned to highlight the extension of federal fuel excise tax relief at Akita Equipment in St. John’s, Newfoundland and Labrador, with a media availability on September 15. The event addressed policy continuity and industry impact across the province.
Sources: www.canada.ca
Provincial Government News
Quebec launches initiative to regulate and propel renewable source gas sector
On July 16, Quebec announced plans to revise its renewable source gas regulation, seeking competitive local production and reduced tariff impacts. An expert committee and the Energy Board will submit recommendations by November, with a sector call for projects planned in 2027.
Sources: www.quebec.ca
Alberta boosts energy partnerships in the U.K. through CCUS summit
Alberta’s Energy and Minerals Minister Brian Jean is in London for the 2026 Carbon Capture Global Summit, promoting Alberta’s CCUS sector and pursuing stakeholder meetings with European industry partners. The mission aims to expand market access and investment.
Sources: www.alberta.ca
Nova Scotia premier attends Canada’s First Investment Summit to showcase offshore energy potential
Premier Tim Houston joined the Canada Investment Summit, presenting 20 investment-ready energy and infrastructure projects and highlighting offshore oil and gas and wind resource potential.
Sources: news.novascotia.ca
Manitoba Government announces sales tax exemption on Port of Churchill Plus investments
Premier Wab Kinew introduced a tax exemption for major capital investments in the Port of Churchill Plus project, facilitating development in LNG facilities, railway upgrades, and year-round shipping infrastructure.
Sources: news.gov.mb.ca

What We're Reading This Week
- Canada’s energy opportunity: Why global investors should be looking north: Investment media coverage examining Canada’s draw for global energy capital.
- Energy project envisioned to become major economic driver aligned with national energy goals: National news explores how an energy project could contribute significantly to economic growth.
- Alberta looking at overhaul of natural gas sector: cabinet report: Regional reporting discusses potential changes in Alberta’s natural gas sector regulation.
- Enbridge launches open season for proposed Texas natural gas pipeline: Pipeline operator initiates open season for a Texas gas project, as covered by business media.
- What the closure of Saudi Arabia’s East-West pipeline could mean for oil flows: News analysis on global oil logistics following Saudi pipeline shutdown.
- Is Donald 'drill, baby, drill' Trump helping the world transition away from oil?: Commentary on US energy policy and its position in global transition debate.