LG Chem, a leading South Korean chemical company, has secured a shipment of 27,000 tons of naphtha from Russia. This move comes amid concerns of potential supply disruptions stemming from geopolitical tensions in the Middle East, according to the Ministry of Trade, Industry and Energy and industry sources on Monday.
The naphtha, a crucial raw material widely utilized in the petrochemical industry and other sectors, is expected to arrive in South Korea later today and will be transported to the Daesan petrochemical complex in South Chungcheong Province, a key manufacturing hub.
While the imported quantity represents a fraction of the country’s average monthly consumption of 4 million tons, it signifies the establishment of an alternative supply chain through collaborative efforts between the government and private sector in response to global uncertainties.
This import was facilitated by a temporary relaxation of U.S. sanctions on Russian petroleum products. However, the continuation of these imports will depend on whether the U.S. decides to extend the waiver, which is currently scheduled to expire on April 11, a ministry official stated.
