en.Wedoany.com Reported - South Korea and Canada signed a comprehensive energy cooperation agreement in Ottawa on June 2, 2026, under which South Korea commits to more than tripling its crude oil imports from Canada and significantly expanding liquefied natural gas (LNG) trade between the two countries. The agreement was formally reached at a bilateral forum co-hosted by the energy ministries of both nations, as ongoing instability in the Middle East disrupts global supply chains, prompting Seoul to seek more reliable energy partners beyond the Strait of Hormuz.
The Ottawa forum was held on June 2, 2026, co-hosted by South Korea's Ministry of Trade, Industry and Resources and Canada's Ministry of Energy and Natural Resources. Kang Hoon-sik, Special Representative for Economic Strategy and Cooperation to the President and Chief of the Presidential Secretariat, attended the forum, marking his second visit to Canada in 2026 and underscoring Seoul's emphasis on bilateral ties. The two governments described the partnership as "each other's best strategic partner," citing shared values and geopolitical stability as the foundation for deeper cooperation.
Prolonged conflict in Iran and ongoing disruptions at the Strait of Hormuz have reshaped how nations think about energy supply chains. For South Korea, a major energy importer with limited domestic production, these disruptions pose a direct and urgent threat. Seoul is actively seeking to reduce its reliance on routes passing through the Strait of Hormuz, where interruptions almost immediately affect oil and gas shipments to East Asia. Growing global competition over critical mineral supply chains has further heightened the urgency. Canada, with its abundant hydrocarbon reserves and stable geopolitical profile, meets the criteria Seoul is looking for.
The key figures in the agreement are significant. South Korea plans to increase crude oil imports from Canada from 4.88 million barrels in 2025 to 16 million barrels in 2026, a roughly 3.3-fold increase within one year. Officials are also studying further expansion to 20 million barrels annually. At that level, South Korea would become Canada's third-largest crude oil export destination, behind only the United States and China. The agreement holds practical strategic value for Ottawa: over 90% of Canada's crude oil production flows south to the U.S., and diversifying exports to Asia has long been a policy goal for Canada.
Natural gas trade featured prominently in the Ottawa discussions. South Korea aims to secure 3.4 million tons of LNG annually from Canada, valued at approximately CAD 6.41 billion (about USD 4.6 billion). Whether this target is achieved depends in part on South Korea's participation in the second phase of an LNG project in Kitimat, British Columbia, with a final investment decision expected in the third quarter of 2026. If cooperation proceeds as planned, Canada's share of South Korea's LNG imports could rise from 1.7% in 2025 to 3% by 2031, representing a meaningful shift in the supply structure.
South Korea has long regarded energy security as a core policy priority. With minimal domestic production and heavy reliance on imports, supply chain reliability remains a constant concern for policymakers. Canada has spent years trying to expand LNG and crude oil exports to Asian markets, with infrastructure being the main constraint. The Kitimat LNG terminal on Canada's Pacific coast offers a Pacific export route that completely bypasses the Strait of Hormuz. The June 2 agreement combines Seoul's diversification needs with Ottawa's export ambitions, with crude oil imports potentially reaching 20 million barrels annually and LNG trade potentially reaching 3.4 million tons per year.
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