If you live in Saint John, you know the Irving Oil refinery powers a massive part of the local economy. Now, global conflicts are forcing Canada’s largest refinery to change how it gets its crude oil. The ongoing war involving Iran has disrupted Irving Oil’s long standing supply from Saudi Arabia. This disruption is pushing the company to look closer to home for its energy needs.

Federal Approval for Foreign Ships

Irving Oil recently secured permission from federal regulators to use a foreign owned ship to transport crude oil from Newfoundland offshore fields directly to Saint John. According to a recent report by CBC News, the company told regulators that the 2026 Iran conflict caused a massive crude oil supply disruption. The closure of the Strait of Hormuz halted tanker movements and created global supply shortages.

To keep the fuel flowing to your local gas stations and markets across the Maritimes, Irving applied for an exception to Canadian shipping rules. Normally, only Canadian vessels transport goods between two Canadian ports. Irving contacted six Canadian vessel owners, but none had ships available. Ottawa approved the application in March. This approval allows Irving to receive up to 680,000 barrels of Newfoundland crude starting this month.

A Historic Shift in Supply

Saudi Arabia has served as a reliable source of crude for the Saint John refinery since it opened in 1960. The relationship actually predates the refinery itself. In the 1950s, Standard Oil of Canada partnered with K.C. Irving to help finance the construction of the facility. In exchange, Irving agreed to buy all its crude from them.

While the ownership structure changed over the decades, Irving continued to buy massive volumes of Saudi oil. In 2025, Irving received 21 percent of its crude oil from Saudi Arabia. The United States supplied the majority at 54.6 percent.

The SFL Albany is the foreign vessel tasked with the new shipments. It left Saudi Arabia in February and passed through the Strait of Hormuz just before the attacks began. The ship recently anchored off the coast of Saint John. Irving also secured permission to use a foreign ship to transport crude from the Texas gulf coast later this spring.

Frequently Asked Questions

Why is Irving Oil changing its crude oil supply?

The ongoing conflict involving Iran closed the Strait of Hormuz. This closure disrupted global shipping routes and cut off Irving Oil’s reliable supply of crude from Saudi Arabia.

Where is the new oil coming from?

Irving Oil is bringing in crude oil from offshore fields in Newfoundland and Labrador. The company also plans to bring in crude from the Texas gulf coast.

Why is a foreign ship transporting Canadian oil?

Irving Oil needed to move oil from Newfoundland to Saint John quickly. The company contacted six Canadian shipping companies, but none had vessels available. The federal government granted a special exception allowing a foreign owned ship to do the job.