Middle Eastern Buyers Seek Canadian LNG Amid Geopolitical Concerns

Pacific Energy's Ratnesh Bedi reported growing inquiries from Middle Eastern buyers for liquefied natural gas from Canada, despite the Woodfibre project's 2.1 million tonnes per year capacity being fully contracted to BP. This interest is driven by geopolitical disruptions, particularly the war in Iran and issues in the Strait of Hormuz, prompting buyers to seek alternative supply routes that minimize exposure to geopolitical risks.

The Woodfibre project, located near Squamish, B.C., is expected to commence exports by December 2027 and benefits from shorter shipping times to Asia compared to U.S. exports. Recent investments from Germany’s SEFE and Uniper into Canadian LNG and interest from Saudi Aramco-backed MidOcean highlight a growing international focus on Canada's LNG sector. Although regulatory challenges exist in Canada, recent governmental initiatives aim to expedite project approvals, positioning Canada as an attractive alternative for LNG procurement.