Middle East Turns to Canada for LNG Amid Geopolitical Tensions

Buyers in the Middle East are seeking liquefied natural gas (LNG) from Canada as a hedge against geopolitical turmoil, according to Ratnesh Bedi, president of Singapore-based Pacific Energy. The company owns a 70% stake in the Woodfibre LNG project currently under construction on Canada's west coast.

Bedi said that his company is fielding inquiries from Middle Eastern buyers despite the project's capacity being fully contracted to BP at 2.1 million tonnes per year. This interest reflects a broader shift among global LNG buyers seeking to diversify supply sources in the wake of the war in Iran and Strait of Hormuz disruptions.

The Middle East, one of the world's top LNG-producing regions, is now looking to secure backup supplies from routes free of geopolitical chokepoints like the ones that threaten its own exports. Bedi noted that even suppliers out of the Middle East are coming to find alternate supplies for their customers.