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, noted in a regular briefing on energy supply that Seoul has been reaching out to Saudi Arabia, Oman, Kazakhstan, the United States, and other countries. Yang stated 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 of increased alternative supplies in May.
To address the shortfall, the government is managing demand and assisting with supplies through a crude oil swap system with private companies. Yang emphasized that the government will maintain close monitoring of the market.
Another ministry official added that all four major Korean refiners are also striving to secure alternative oil supplies. "U.S. crude accounts for the largest shares of alternative supplies that have been secured," the official mentioned.
In relation to Australia's plan to impose export restrictions on natural gas, Yang commented that the move is expected to have limited impact on South Korea. He explained that Australia assured Seoul's foreign ministry there will be no disruption in its long-term gas supply contract with Korea. Australia plans to restrict exports of natural gas on short-term spot contracts, with potential disruptions affecting only about half of a day's supply, equating to some 30,000 to 40,000 tons of short-term gas supplies from the country.