Canada, South Korea Look to Expand Energy Trade

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

Canada and South Korea agree to expand their trade relationship on energy goods. A South Korean company is part of the joint venture behind the LNG Canada export facility.

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Canada Plays Energy Cards on Trade

South Korea, which is a 5% stake in the LNG Canada facility in British Columbia through state-owned Korean Gas Corporation, has agreed to deepen its ties to Canada in energy, the Canadian government announced.

LNG Canada has a design capacity of 14 million metric tons per annum of gas in the liquid form. Recently, a joint venture led by Fluor Corporation was tasked with advancing Phase 2 developments, which would see the export capacity double. According to Industrial Info Resources data, the proposed addition of two more liquefaction units--trains 3 and 4-- at LNG Canada has an investment value of US$12.5 billion.

The Industrial Info Resources Global Market Intelligence (GMI) Oil & Gas Production Project Database offers a detailed project report.

On Tuesday, Canadian Energy Minister Tim Hodgson welcomed Kang Hoon-Sik, a special economic envoy from South Korea, to Ottawa to discuss expanding trade opportunities.

"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," Hodgson said.

Energy product exports from Canada to South Korea last year were valued at US$1.6 billion. Shell leads the consortium behind LNG Canada with a 40% stake, joined by the likes of Malaysian state energy company Petronas and the Korean Gas Corporation.

LNG Canada was included on a list of nation-building projects meant to diversify Canadian trade. Prime Minister Mark Carney is working to halve U.S. trade in response to the belligerent rhetoric from U.S. President Donald Trump.

LNG Canada is currently the only facility in North America capable of exporting super-cooled gas from the Pacific Coast. All of the long-term contracts for LNG from Canada are for Asian economies. Data to March, the last full month for which the Canadian government supplied records, show South Korea was the dominant importer.

Federal data show exports averaged 1.4 billion cubic feet of gas per day in the liquid form to March, a 350% increase over full-year 2025 levels.

By the Numbers

• US$1.6 billion in Canadian energy exports to South Korea
• 137-year supply of energy in Alberta

Alberta Looks to U.S. For Trade

Alberta, which is scheduled to hold a referendum for independence later this year, has sent Member of the Legislative Assembly Angela Pitt to Louisiana to drum up support for provincial energy from U.S. policymakers. Her meetings with the National Conference of State Legislatures (NCSL) Task Force on Energy Supply will take place from June 3 to June 6.

"Alberta has an estimated 137-year supply of world-class energy resources, providing a stable, responsibly produced source of energy that supports North American energy dominance and long-term economic growth," Pitt said in a press release announcing her presence at the event.

Alberta is the dominant oil producer in Canada, and its thick bitumen is suited for a U.S. refinery sector tailored to run a more viscous slate of crude. Averaging around 4 million barrels per day (bpd) to the U.S. economy, Canada accounts for 60% of total foreign deliveries.

Alberta's energy product exports to the United States were valued at $90 billion last year.

Key Takeaways

• South Korea keen on stronger energy ties to Canada.
• Alberta's leaders, meanwhile, were courting U.S. officials.

About Industrial Info Resources
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