Ministry of Trade, Industry and Energy and Canada's Natural Resources Ministry co-host energy and supply chain cooperation forum in Ottawa

Moon Shin-hak (second from right, front row), vice minister of trade, industry and energy, attends the Korea-Canada Advanced Industry Cooperation Business Roundtable in Toronto on June 1 (local time). [Ministry of Trade, Industry and Energy]
Moon Shin-hak (second from right, front row), vice minister of trade, industry and energy, attends the Korea-Canada Advanced Industry Cooperation Business Roundtable in Toronto on June 1 (local time). [Ministry of Trade, Industry and Energy]

South Korea has launched a final push to win Canada's next-generation submarine procurement program (CPSP), whose winner is expected to be announced later this month. The bid is linked to a sweeping expansion of energy and resource supply chain cooperation, including a plan to more than triple imports of Canadian crude oil.

South Korea's Ministry of Trade, Industry and Energy and Canada's Department of Natural Resources co-hosted the Korea-Canada Energy and Resource Supply Chain Cooperation Forum in Ottawa on Monday (local time). The event was organized by the Korea Trade-Investment Promotion Agency (KOTRA).

Kang Hoon-sik, chief of staff to President Lee Jae Myung and his special envoy for strategic economic cooperation, met Canadian Natural Resources Minister Tim Hodgson on the sidelines to discuss the direction of government-level energy and resource cooperation.

Both sides agreed that the two countries are each other's most reliable partners amid a rapidly shifting global supply chain environment, and committed to expanding mutually beneficial cooperation across all resource sectors, including crude oil, liquefied natural gas and critical minerals.

On crude oil, South Korea plans to increase imports of Canadian crude from 4.88 million barrels last year to as many as 16 million barrels this year — roughly 3.3 times more — with a further goal of eventually reaching 20 million barrels annually.

At that scale, South Korea would become Canada's third-largest crude export destination after the United States and China. For Canada, which has long relied heavily on the U.S. market, the arrangement offers a chance to diversify exports toward Asia.

On LNG, the two sides discussed advancing a second phase of the LNG Canada project, in which Korea Gas Corp. holds a 5 percent stake and currently receives 700,000 metric tons per year.

A final investment decision on the second phase is targeted for the third quarter of this year. If the new Ksi Lisims project, with an annual capacity of 2 million metric tons, is also added, South Korea would secure a stable supply of 3.4 million metric tons of Canadian LNG per year in total.

In critical minerals, South Korean companies have already announced purchase plans worth 9.03 billion Canadian dollars for lithium, rare earths, nickel and copper concentrate, along with investment intentions of 130 million Canadian dollars in graphite mining.

As a follow-up to a phone call between the two leaders on May 8, the Ministry of Trade, Industry and Energy and Canada's Natural Resources Ministry also agreed to develop a joint critical minerals stockpiling plan by the end of this year.

Separately, the Korea Institute of Geoscience and Mineral Resources signed an implementation agreement with the Geological Survey of Canada for joint research on natural hydrogen.

"The two governments and KOTRA will support the smooth implementation of cooperation in energy and resource sectors — including procurement and investment in crude oil, LNG and critical minerals — and work together to resolve on-the-ground difficulties faced by companies," a ministry official said.


oskymoon@heraldcorp.com