South Korea to boost Canadian crude and LNG imports as energy ties deepen

The commitment emerged from a meeting between Canada's Energy and Natural Resources Minister Tim Hodgson and South Korean presidential Chief of Staff and Special Envoy for Strategic Economic Cooperation Kang Hoon-Sik on Tuesday.

Canadian officials said Seoul's decision to expand purchases of Canadian crude marks a significant step in strengthening bilateral energy ties as both countries seek greater energy security amid an increasingly uncertain geopolitical environment.

South Korea has also agreed to facilitate the application of preferential tariff treatment for Canadian crude imports under the Canada-Korea Free Trade Agreement, a move expected to improve market access for Canadian energy producers.

The crude oil announcement comes as Canada and South Korea broaden cooperation across the energy sector, including liquefied natural gas (LNG), critical minerals and emerging clean-energy technologies.

The two countries agreed to develop a joint critical minerals stockpiling plan by the end of 2026, reflecting efforts to build more resilient supply chains for strategic resources essential to advanced manufacturing and clean-energy industries.

Kang Hoon-Sik in his last visit to Canada in January. Photo: Kang Hoon-Sik

Officials also discussed investments in natural resource projects and measures aimed at stabilizing energy supplies.

Canada and South Korea further welcomed a new agreement between the Geological Survey of Canada and the Korea Institute of Geoscience and Mineral Resources to collaborate on research involving naturally occurring hydrogen.

LNG remained another key focus of the talks. The Korea Gas Corporation is a major investor in LNG Canada Phase I and is expected to be a partner in the proposed Phase II expansion.

A final investment decision on LNG Canada Phase II is expected later this year. If approved, South Korea plans to import at least 1.4 million tonnes of Canadian LNG annually for more than 30 years once the project enters full production in the early 2030s.

Hodgson said Canada and South Korea share a growing partnership centered on energy security and diversified supply chains.

"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," he said.

Kang said the partnership had become increasingly important amid geopolitical risks and global supply-chain challenges.

"Built on this trust, our cooperation strengthens our mutual resource security," he said, adding that both countries were committed to developing a more integrated energy supply chain partnership.

The discussions underscore Canada's efforts to expand energy exports to key Asian allies while positioning itself as a reliable supplier of crude oil, natural gas and critical minerals.