Seoul, April 2 – South Korea has secured approximately 50 million barrels of alternative oil supplies for this month to replace supplies from the Middle East, which have been disrupted due to the effective closure of the Strait of Hormuz, government officials said on Thursday, pledging continued efforts to stably manage energy supplies.
The government and oil refineries are working hard to secure alternative oil supplies from different countries, said Yang Ghi-wuk, deputy minister for trade, industry, and resource security, in a regular briefing on energy supply, noting that Seoul has been reaching out to Saudi Arabia, Oman, Kazakhstan, the United States, and other countries, according to reports from Yonhap news agency.
Yang stated that approximately 80 million barrels of oil arrive in South Korea each month under normal circumstances, but around 50 million barrels have tentatively been secured for this month, with an expectation that alternative supplies will increase in May.
To address this shortfall, the government is controlling demand and working to facilitate supplies through a crude oil swap system with private companies, he added, noting that the government will continue to closely monitor the market.
Regarding Australia's plan to impose export restrictions on natural gas, Yang said that the move is expected to have a limited impact on South Korea, explaining that Australia has informed Seoul's foreign ministry that it will ensure there is no disruption in its long-term gas supply contract with Korea.
Australia is planning to restrict exports of natural gas on short-term spot contracts, he added, noting that Seoul may experience disruptions in approximately 30,000 to 40,000 tons of short-term gas supplies from the country, which is only about half a day's supply.
Meanwhile, Industry Minister Kim Jung-kwan vowed on Thursday to make the utmost effort to stabilize the supply of naphtha and other petrochemical materials amid supply disruptions due to the Middle East conflict.
Kim made this pledge in a meeting with officials from related ministries and business associations, according to the Ministry of Trade, Industry, and Resources, which was held to discuss supply chain measures for petrochemical products.
"Since naphtha is a staple of industry and also a core raw material used in everyday products, the government will do its utmost to establish a stable petrochemical supply chain and prevent any disruptions in people's daily lives and industrial activities," Kim said.
The minister also vowed a firm response to any unfair market practices and actions that harm market trust.
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