South Korea announced on Tuesday that it has secured an additional 60 million barrels of alternative oil supply for May to offset disruptions in Middle Eastern oil shipments due to the effective closure of the Strait of Hormuz.
Deputy Minister of Trade, Industry and Energy Yang Ghi-wuk stated at a regular press briefing that so far, South Korea has secured a total of 110 million barrels of oil from 17 countries, including Saudi Arabia, the United States, the United Arab Emirates, Brazil, and Canada. This includes 50 million barrels for April and 60 million barrels for May.
Regarding the crude oil swap mechanism introduced last week, Yang noted that the country’s four major refining companies have submitted plans to borrow over 30 million barrels of crude oil, with approximately 8 million barrels scheduled for delivery this week.
Under the crude oil swap system, South Korean refiners can borrow crude from national reserves and return an equivalent amount once their imported oil shipments arrive.
"Refining companies have shown interest in the crude oil swap mechanism and are willing to utilize it," he said.
Speaking about naphtha—a key feedstock for petrochemical production—Yang projected that naphtha imports this month would reach 770,000 tons, representing about 70% of the volume imported during the same period last year.
He added that, combined with domestic production of approximately 1.1 million tons, total naphtha supply this month is expected to reach 80% to 90% of normal demand.
"Once the supplementary budget is passed and additional funds are available, we will work with companies to ensure stable naphtha supply," he stated.
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