Seoul: 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 Thursday, vowing continued efforts to stably manage energy supplies.
According to Yonhap News Agency, 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, stated in a regular briefing on energy supply that Seoul has been reaching out to Saudi Arabia, Oman, Kazakhstan, the United States, and other countries for assistance.
Yang mentioned that about 80 million barrels of oil typically arrive in South Korea each month under normal circumstances. However, around 50 million barrels have been tentatively secured for this month, with expectations for increased alternative supplies in May.
To address the shortfall, the government is managing demand and facilitating supplies through a crude oil swap system with private companies. Yang emphasized that the government will continue to closely monitor the market.
Regarding Australia's plan to impose export restrictions on natural gas, Yang noted the move is expected to have limited impact on South Korea. He explained that Australia assured Seoul's foreign ministry there would be no disruption to its long-term gas supply contract with Korea.
Australia is planning to restrict exports of natural gas on short-term spot contracts. Yang noted that Seoul might experience disruptions in some 30,000 to 40,000 tons of short-term gas supplies from Australia, which amounts to only about half of a day's supply.