South Korea has received 1 million barrels of oil amid the Middle East supply crisis.
SEOUL – An oil tanker that transited the Strait of Hormuz in mid-April arrived at the port of Daesan on Friday, carrying South Korea’s first crude oil shipment through the strait since the war began.
The Malta-flagged tanker Odessa carried around 1 million barrels of crude oil. That volume is equivalent to roughly 35% to 50% of South Korea’s daily oil consumption.
Before the Iran conflict erupted, South Korea imported most of its oil from the Middle East and was one of the Asian countries most dependent on liquefied natural gas from Qatar, which is now no longer operating.
According to Oilprice, amid disruptions to oil and gas supply caused by the Middle East conflict, South Korea has also delayed the shutdown of several coal-fired power plants.
Shipping disruptions from the Middle East prompted Seoul last month to seek alternative suppliers.
Senior government officials visited Oman, Kazakhstan and Saudi Arabia to secure oil supplies that do not need to pass through the Strait of Hormuz.
Chief of Staff Kang Hoon-sik said the need to secure alternative supply sources has become urgent, as around 61% of South Korea’s crude oil imports and 54% of its naphtha imports depend on the Hormuz route.
In mid-April, South Korea secured 273 million barrels of crude oil from the Middle East and Kazakhstan that do not need to transit the Strait of Hormuz.
That volume is said to be sufficient to support the country’s economic needs for more than three months under normal conditions.
“Those 273 million barrels of crude oil, based on last year’s consumption levels, are enough to support the economy for more than three months without additional emergency measures,” Kang said.
In addition, South Korea also secured 2.1 million tonnes of naphtha, a key feedstock for its petrochemical industry. (DK/LM)
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