Middle Eastern Buyers Eye Canadian LNG Amid Geopolitical Uncertainty

Interest in Canadian liquefied natural gas (LNG) has surged among Middle Eastern buyers, who are seeking to diversify their supply sources amidst geopolitical turmoil. Ratnesh Bedi, president of Pacific Energy, which owns a 70% stake in the Woodfibre LNG project, said that his company is receiving inquiries from Middle Eastern buyers despite the project's capacity being fully contracted to BP.

The interest reflects a broader trend among global LNG buyers seeking to reduce their reliance on specific supply routes. Bedi noted that even Asian and Middle Eastern suppliers are looking for alternate supplies due to concerns about geopolitical chokepoints like the Strait of Hormuz.

Canada's west coast LNG industry is seen as an attractive option due to its proximity to Asian markets and lack of exposure to geopolitical risks. The Woodfibre project, which is targeting December 2027 for its first export cargo shipment, has attracted interest from several buyers, including SEFE and Uniper.

Bedi attributed the growing demand to a shift in buyer behavior, with companies seeking geographic diversification to mitigate supply disruptions. He added that Canada's regulatory process can add years to project timelines, but recent efforts by Prime Minister Mark Carney to speed permitting times are encouraging.