Middle Eastern Buyers Turn to Canadian LNG Amid Geopolitical Turmoil

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 Pacific Energy. The company owns a 70% stake in the Woodfibre LNG project currently under construction on Canada's Pacific Coast near Squamish, BC. Despite having a fully contracted capacity of 2.1 million tonnes per year with BP, Bedi said that his company is fielding inquiries from Middle Eastern buyers.

The 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. Bedi said that his company has received inquiries almost every week from potential buyers.

The Woodfibre project, which is targeting December 2027 for its first export cargo shipment, offers shorter shipping times to Asian markets than US Gulf Coast LNG exporters. The war in Iran and the resulting Strait of Hormuz disruptions have changed the way LNG buyers think about their portfolios, Bedi said. Buyers worldwide want geographic diversification that will allow them to procure short-term emergency supply if necessary without relying on the global spot market.

Bedi added that Canada benefits from this because its west coast LNG industry isn't exposed to any geopolitical chokepoints. He noted that buyers are looking at what-if scenarios and thinking about securing backup supplies from routes with lower risks of disruption.