South Korea Signs Up for More Canadian Oil & Gas

South Korea Signs Up for More Canadian Oil & Gas

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Key Takeaways

  • South Korea is moving to buy significantly more Canadian crude oil, signalling growing confidence in Canada as a secure long-term supplier to Asian markets.

  • Canadian LNG is also part of the opportunity, with South Korea looking at long-term imports that could strengthen Canada’s role in global natural gas trade for decades.

  • The expanding partnership is about more than exports – it highlights Canada’s ability to support economic growth at home while providing reliable energy to allies abroad.

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South Korea’s growing interest in Canadian crude oil and liquefied natural gas (LNG) is another clear sign that the world wants more of what Canada has to offer. In a recent federal announcement, the two countries confirmed deeper co-operation on energy resources, with a focus that includes expanding access to Canadian-made oil and LNG [1].

The agreement reinforces a simple but important reality: Canada is seen as a stable, dependable energy supplier in an unpredictable world.

At a time when many countries are looking to diversify their supply chains and reduce exposure to geopolitical risks, Canada has an opportunity to step up as a trusted partner for energy-hungry buyers across Asia.

Recent reporting says South Korea is exploring ways to more than triple its crude oil imports from Canada, rising from 4.88 million barrels in 2025 to as much as 16 million barrels in 2026, with the potential to eventually reach 20 million barrels annually. That would lift shipments from roughly 13,000 barrels per day (bpd) to about 44,000 bpd, with further upside toward 55,000 bpd, while strengthening Canada’s position in Asia and helping diversify exports beyond the United States.

Canada’s oil trade opportunity with South Korea is immediate, but the LNG opportunity also shows that this relationship is being built for the long term.

Once LNG Canada Phase II reaches a final investment decision and begins production in the early 2030s, South Korea intends to import at least 1.4 million tonnes of Canadian LNG per year for more than 30 years [1]. That is more than just a future export opportunity. It is a clear long-term demand signal for Canadian natural gas and another reminder that global buyers want dependable Canadian supply for the long haul.

This is not a sudden development. South Korea has been signalling a stronger interest in Canadian energy since 2023, when Lim Woongsoon, former Ambassador to Canada, said that his country was eager to receive its first imports of Canadian natural gas. Throughout his tenure, the ambassador met with Canadian leaders on multiple occasions to discuss his country’s desire for Canada’s energy and its role in delivering energy security for his nation [3].

For Canadians, this is exactly the kind of opportunity we should be pursuing to secure our economic future.

Energy Minister Tim Hodgson would agree, stating on the official announcement:

“Canada and the Republic of Korea share a strong and growing partnership built on our mutual interest in energy security, accelerating and diversifying critical minerals supply chains, and advancing the energy transition. As global demand rises, Canada is proud to be a stable and dependable partner to Korea and beyond, ready to deepen collaboration and unlock new opportunities for sustainable economic growth in both our countries.”

For years, the conversation around Canadian energy has often ignored a basic fact: global demand for our oil and natural gas is strong, and many countries would prefer to buy from producers like Canada rather than from riskier jurisdictions abroad.

South Korea’s leadership delivered a similarly strong message. Kang Hoon-Sik, the Republic of Korea’s Chief of Staff to the President and Special Envoy for Strategic Economic Cooperation, said:

“Amidst geopolitical risks, Korea and Canada stand as deeply reliable partners. Built on this trust, our co-operation strengthens our mutual resource security while synergizing perfectly with our resilient industrial base. Moving forward, we are committed to elevating this foundation into a fully integrated energy supply chain partnership.”

These statements underscore the bigger picture: building a long-term strategic partnership between two reliable allies, one with growing energy demand and one with the resources to meet it.

It is also a reminder that Canada’s energy sector remains one of our greatest economic strengths. In 2025, energy products were already Canada’s largest export to South Korea, worth $2.2 billion [1]. With deeper co-operation, more Canadian crude oil and LNG can reach South Korean markets, creating more prosperity here at home while improving energy security abroad.

The message from South Korea is clear: it wants more Canadian energy. The question for Canada is whether we are prepared to deliver it.

If we build new trade infrastructure, such as pipelines and ports, and support further development of our energy resources, Canada can create good-paying jobs, generate critical public revenues that support social programs and strengthen its role as one of the world’s most reliable energy suppliers.

This landmark agreement once again confirms that the world needs more Canadian energy. The opportunity is real. Now it is time to seize it.

Learn more at TimeForAction.ca

SOURCES:

1 - https://www.canada.ca/en/natural-resources-canada/news/2026/06/canada-and-the-republic-of-korea-deepen-co-operation-on-energy-resources-and-critical-minerals.html

2 - https://oilprice.com/Latest-Energy-News/World-News/South-Korea-Locks-In-Canadian-Crude-LNG-in-Sweeping-Supply-Overhaul.html

3 - https://energysecurefuture.ca/canadas-lng-advantage-a-reliable-solution-for-a-changing-global-energy-landscape/