South Korea has secured approximately 50 million barrels of alternative oil supplies for the current month to offset disruptions in Middle Eastern shipments potentially arising from the effective closure of the Strait of Hormuz. Government officials announced the contingency plan on Thursday, emphasizing ongoing efforts to ensure a stable energy supply for the nation.
Yang Ghi-wuk, Deputy Minister for Trade, Industry and Resource Security, stated during a regular energy supply briefing that the government and oil refineries are actively sourcing alternative oil from diverse countries. He highlighted Seoul’s proactive engagement with nations such as Saudi Arabia, Oman, Kazakhstan, and the United States to bolster its energy reserves.
Minister Yang clarified that South Korea typically receives around 80 million barrels of oil monthly under normal circumstances. However, approximately 50 million barrels have been provisionally secured for this month, with expectations of increased alternative supplies in May.
To bridge the supply gap, the government is implementing demand management strategies and facilitating supplies through a crude oil swap system in collaboration with private sector companies. He assured that the government will maintain rigorous monitoring of the energy market to preemptively address any potential challenges.
Addressing concerns regarding Australia’s proposed export restrictions on natural gas, Minister Yang indicated that the impact on South Korea is anticipated to be minimal. He noted that the Australian government has assured the South Korean Ministry of Foreign Affairs that long-term gas supply contracts with Korea will not be disrupted.
