If you live in Saint John, you know the Irving Oil refinery plays a massive role in the local economy and the broader North American energy grid. Now, global events are forcing a major shift in how the facility gets its crude oil.

Image source: EnergyNow.ca

Global Conflict Forces Local Changes

The 2026 conflict involving Iran and Israel has choked off critical oil supplies moving through the Strait of Hormuz. This creates a unique problem for the Saint John facility. It is the only refinery in Canada that relies on crude oil originating from the Persian Gulf.

To keep operations running smoothly, Irving Oil is turning to a domestic source. The company will bring in crude from Newfoundland and Labrador for the first time since July 2020.

Securing the Supply Chain

Irving Oil recently secured permission from the Canadian Transportation Agency to use foreign tankers for this domestic route. These ships will transport between 650,000 and 680,000 barrels of crude oil from the Whiffen Head terminal in Newfoundland directly to Saint John.

The shipments are scheduled to arrive between April 25 and May 25.

In its March 13 application for the shipping waiver, Irving Oil outlined the severity of the situation. The company stated, “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. 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.”

Navigating Shipping Regulations

Canada strictly regulates domestic shipping. The Coasting Trade Act requires companies to use Canadian registered and crewed vessels to move goods between domestic ports. However, Canada has very few oil tankers capable of handling this volume. The federal government issues waivers in these specific situations to ensure energy security.

Before this disruption, the Saint John refinery relied heavily on Saudi Arab Light and Iraq Basrah Light crude grades. By pivoting to Newfoundland, the refinery ensures a steady supply of fuel for Atlantic Canada and the United States Northeast.

Frequently Asked Questions

Why is the Saint John refinery buying oil from Newfoundland?

The ongoing conflict in the Middle East has blocked supply routes through the Strait of Hormuz. This prevents Irving Oil from accessing its usual crude oil shipments from the Persian Gulf.

How much oil is coming from Newfoundland?

Foreign tankers will transport between 650,000 and 680,000 barrels of crude oil to the Saint John refinery.

When will the shipments arrive?

The oil will travel from the Whiffen Head terminal in Newfoundland to Saint John between April 25 and May 25.

Why did Irving Oil need special permission for this shipment?

Canadian law requires companies to use domestic ships for routes between Canadian ports. Because Canada lacks enough large oil tankers, Irving Oil applied for and received a federal waiver to use foreign vessels.