The Closed Strait of Hormuz Is Testing Asia’s Energy Security. The Answer Lies Across the Pacific—In Canada

Why It Matters

Asia’s reliance on Hormuz exposes its energy imports to geopolitical shocks; Canada’s Pacific route provides a resilient, cost‑effective hedge against such disruptions.

Key Takeaways

• Hormuz closure halted 20 M bpd crude, spiking Asian LNG prices
• Canada’s Pacific LNG route halves transit time to Asia
• Trans Mountain now ships 890 k bpd to Vancouver for Asia
• U.S. Gulf‑coast LNG faces 24‑day Panama Canal route, higher costs
• Future Canadian projects could supply >40 Mtpa LNG by early 2030s

Pulse Analysis

The abrupt shutdown of the Strait of Hormuz has laid bare Asia’s vulnerability to Middle‑East chokepoints. Over 80% of the region’s crude and LNG historically passed through Hormuz, and the sudden halt of 20 million barrels per day of oil, coupled with a 39% jump in LNG benchmarks, forced governments to impose emergency energy‑saving measures. This crisis underscores the strategic imperative for Asian importers to diversify supply routes and reduce exposure to geopolitical flashpoints.

Canada’s Pacific energy corridor is emerging as a viable alternative. The LNG Canada facility in Kitimat began shipments in mid‑2025, delivering cargoes directly to Northeast Asian terminals without traversing Hormuz, Malacca, or the South China Sea. Simultaneously, the Trans Mountain Expansion now transports up to 890,000 barrels per day of Alberta crude to the West Coast, where it can be loaded onto tankers bound for China, Japan, and South Korea. Compared with Gulf‑coast LNG that must navigate the Panama Canal—a 24‑day voyage costing roughly $2/MMBtu—Canadian LNG reaches Asian markets in 10‑11 days at under $1/MMBtu, offering both speed and price advantages.

Looking ahead, Canada’s pipeline and LNG projects are set to scale dramatically. Phase 2 of LNG Canada and the Ksi Lisims development could push total Pacific LNG capacity beyond 40 million tonnes per annum by the early 2030s. Long‑term contracts with Asian utilities would lock in cheap, reliable supply, insulating buyers from future Hormuz‑related shocks. Ottawa’s proactive outreach to Asian investors further cements the partnership, positioning Canada as a cornerstone of a more resilient, diversified energy landscape for the continent.