Seoul, April 3: South Korea has announced that it has secured approximately 50 million barrels of alternative oil supply for this month. This move aims to compensate for the disruption caused by the effective closure of the Hormuz Strait, which has impacted oil supplies from the Middle East.
On Thursday, government officials committed to ongoing efforts to stabilize energy supply.
According to the Yonhap News Agency, both the government and oil refineries are working diligently to ensure alternative oil supplies from various countries. Yang Gi-wook, the Deputy Minister for Trade, Industry, and Resource Security, stated during a regular energy supply briefing that Seoul is in contact with Saudi Arabia, Oman, Kazakhstan, the United States, and other nations.
Yang noted that under normal circumstances, South Korea receives about 80 million barrels of oil each month. However, for this month, only around 50 million barrels have been temporarily secured. An increase in alternative supplies is anticipated for May.
To address the shortfall, the government is managing demand and assisting with supply through a crude oil swap system with private companies. The government will closely monitor the market.
Regarding Australia’s plan to impose a ban on natural gas exports, Yang mentioned that it would have a limited impact on South Korea. He explained that Australia has assured Seoul’s Foreign Ministry that there will be no disruptions to its long-term gas supply contracts with Korea.
He further stated that Australia plans to halt exports of natural gas under short-term spot contracts. This could lead to a disruption of about 30,000 to 40,000 tons of short-term gas supply to Seoul, which is merely half of a day’s supply.
Meanwhile, Industry Minister Kim Jung-kwan pledged to make every effort to stabilize the supply of naphtha and other petrochemical materials amid supply constraints arising from conflicts in the Middle East.
Kim made this statement during a meeting with officials from relevant ministries and business organizations, where they discussed the supply chain for petrochemical products.
He emphasized, “Naphtha is a fundamental requirement for the industry and a key raw material used in everyday products. Therefore, the government will make every effort to establish a stable petrochemical supply chain and prevent any disruptions to daily life and industrial activities.”
The minister also indicated that strict action would be taken against unfair practices and activities that undermine trust in the market.
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