South Korea to triple Canadian crude oil imports, boost LNG cooperation

South Korea is set to significantly increase its reliance on Canadian energy resources, planning to more than triple its imports of Canadian crude oil this year to as much as 16 million barrels. This move is part of a broader strategy to diversify energy sources and strengthen bilateral ties.

The ambitious plan was discussed during the 'Korea-Canada Energy Resource Supply Chain Cooperation Forum' held in Ottawa. The forum, co-hosted by South Korea's Ministry of Trade, Industry and Energy and Canada's Ministry of Natural Resources, saw participation from approximately 150 representatives from government, industry associations, and corporations from both countries.

Beyond crude oil, the two nations are exploring enhanced cooperation in Liquefied Natural Gas (LNG) and critical minerals. South Korea currently imports 700,000 tons of LNG annually from the LNG Canada project, in which Korea Gas Corporation holds a 5% stake. Discussions are underway for the second phase of LNG Canada and the Ksi Lisims project, which could collectively supply South Korea with an additional 2 million tons of LNG per year, significantly boosting its energy security.

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Canada, as a country that supplies more than 90% of its produced crude oil to the United States, also has an opportunity to diversify its export markets to Asia, the largest crude oil consuming region.