Canada’s Irving turns to Newfoundland for oil on Iran disruption

Saint John, a major supplier of oil to the United States Northeast, is the only Canadian refinery to rely on crude originating from the Persian Gulf. Photo by BRICE MCVICAR/BRUNSWICK NEWS

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Irving Oil Ltd. was granted permission by the Canadian Transportation Agency to use foreign tankers to shuttle 650,000 to 680,000 barrels of crude. The oil will be sent from the Whiffen Head terminal in Newfoundland and Labrador to its 320,000 barrel a day Saint John refinery in New Brunswick between April 25 and May 25, according to a notice. An email to Irving for comment was not immediately returned.

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Saint John, a major supplier of oil to the United States Northeast, is the only Canadian refinery to rely on crude originating from the Persian Gulf. The U.S.-Israel war on Iran has choked off supplies through the vital shipping route the Strait of Hormuz.

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“The 2026 Iran conflict has resulted in the most significant crude oil supply disruption in recent history, with far-reaching implications for global production, shipping, refining, and energy security,” Irving said in its original March 13 application to use foreign tankers.  “It is essential for our customers, for our business, and for the broader energy security of Atlantic Canada that we have the ability to use foreign crude oil tankers to access Canadian crude oil.”

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Despite the proximity, the last time that Irving received a cargo of crude oil produced off the shore of Newfoundland was in July, 2020. The tanker Clio delivered about 633,000 barrels of Hibernia crude to the Irving plant, according to Vortexa data. The refinery received multiple cargoes of Newfoundland crude in 2016 and 2017.

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Saudi Arab Light was the second most commonly utilized oil grade by the refinery since 2020 after West Texas Intermediate, according to Vortexa. Iraq’s Basrah Light was the fourth most common grade and Irving also imported shipments of Saudi Arab Heavy and Arab Extra Light.

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Canada has few oil tankers that can transport domestic crude and the country’s Coasting Trade Act, similar to the Jones Act in the U.S., requires that Canadian-registered-and-crewed vessels ship goods or people between points within the country. However, the government can issue waivers.

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In the U.S., the Trump administration temporarily waived the Jones Act, allowing foreign-flagged vessels to transport a range of commodities — including gasoline, diesel and jet fuel — between U.S. ports for 60 days.

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A cargo of a million barrels of Arab Light was scheduled to arrive at Irving on March 28 after leaving Ras Tanura in Saudi Arabia on Feb. 14, Vortexa data show. Earlier in the year, the refinery received two other cargoes from the region including one from Saudi Arabia and another from Iraq.

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The news on Irving’s plan to use Newfoundland oil was first reported by CBC.

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