Korea Considers Major Expansion of Oil Reserves Amid Global Uncertainty

The Korean government is considering expanding its oil reserve plan by tens of millions of barrels. The current plan, set to run from 2026-2030, aims to stockpile 20 million barrels of crude oil. However, with rising global demand and concerns over international relations, the Ministry of Trade, Industry and Energy plans to announce an amendment to the plan next month.

According to sources within the government, discussions are underway on expanding storage facilities by between 30-40 million barrels, nearly twice the size of the original plan. This would increase the total storage capacity to over 176 million barrels, exceeding the current limit of 146 million barrels.

The expansion is driven by concerns over maintaining exports while meeting domestic demand in an emergency situation. International joint storage agreements with oil-producing countries like Saudi Arabia and the UAE are also a factor. The private sector already has around 190 million barrels of oil stored, but this would only cover about 68 days of stockpiling if exports continue at normal levels.

The government plans to determine the final expansion size by considering factors such as financial resources, space, and regional acceptance. Experts note that Korea's unique position as an importer of crude oil and exporter of petroleum products makes it particularly vulnerable to supply chain disruptions.