Seoul, April 2: South Korea has secured around 50 million barrels of alternative oil supplies for this month to replace supplies from the Middle East blocked due to the effective closure of the Strait of Hormuz, government officials said on Thursday, vowing continued efforts to stably manage energy supplies.
The government and oil refineries are working hard to secure alternative oil supplies from different countries, Yang Ghi-wuk, deputy minister for trade, industry and resource security, said in a regular briefing on energy supply, noting that Seoul has been knocking on doors of Saudi Arabia, Oman, Kazakhstan, the United States and other countries, reports Yonhap news agency.
Yang said about 80 million barrels of oil arrive in South Korea each month when things run as usual, but around 50 million barrels have been tentatively secured at the moment for this month, with alternative supplies expected to increase in May.
To cover the shortfall, the government is controlling the demand and working to help with supplies through a crude oil swap system with private companies, he added, noting the government will continue close monitoring of the market.
Regarding Australia’s plan to impose export restrictions on natural gas, Yang said the move is expected to have limited impact on South Korea, explaining that Australia told Seoul’s foreign ministry it will make sure 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 see disruptions in some 30,000 to 40,000 tons of short term gas supplies from the country, which is only about half of a day’s supply.
Meanwhile, industry Minister Kim Jung-kwan vowed on Thursday utmost efforts to stabilise the supply of naphtha and other petrochemical materials amid supply disruptions due to the Middle East conflict.
Kim made such a 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 of 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 stern response to any unfair market practices and actions harming trust in the market.
–IANS