S. Korea secures crude oil, naphtha by year-end


Kang Hoon-sik, President Lee Jae Myung’s chief of staff. — The Korea Herald

SEOUL: South Korea has secured 273 million barrels of crude oil by the end of this year from four nations in the Middle East, presidential chief of staff Kang Hoon-sik says.

Kang, who returned home from his eight-day trip to Oman, Saudi Arabia and Qatar and Kazakhstan, said the nation also secured 2.1 million tonnes of naphtha by the end of this year.

“The 273 million barrels of crude oil, based on last year’s consumption levels, are sufficient to sustain the economy for more than three months under normal operating conditions without the need for additional emergency measures,” Kang told reporters.

Kang said the 2.1 million tonnes of naphtha, a key feedstock widely used in petrochemical and other industries, are equivalent to about a month’s supply based on last year’s demand.

“The crude oil and naphtha will be shipped through alternative routes not affected by the blockade of the Strait of Hormuz,” Kang said, expressing hope that the agreement would help stabilise domestic energy supplies.

The critical maritime chokepoint has been effectively closed since the US war against Iran began in late February, posing risks to South Korea, which is heavily reliant on energy imports from the Middle East. As part of efforts to ensure a stable energy supply, Kang said his delegation held discussions with major Middle Eastern oil producers on establishing crude oil storage facilities outside the Strait of Hormuz. — The Korea Herald/ANN

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