Korea Cuts Middle East Crude Oil Imports Target

South Korea is set to reduce its reliance on Middle East crude oil imports from 70% in 2025 to just 50% by 2035, as part of a broader effort to diversify energy supplies and strengthen supply chains.

The move comes after the Iran war disrupted global energy flows, highlighting the need for a 'fundamental shift' in South Korea's supply chains, according to the Industry Ministry.

Under its updated strategy, South Korea aims to expand its crude oil stockpile by around 20 million barrels by 2030, and secure additional supplies of condensate, an ultra-light oil used to produce naphtha.

The country currently relies on imports to satisfy about 45% of its naphtha demand, with 77% of those supplies typically sourced from the Middle East. By 2035, South Korea hopes to cap its import dependence on the Middle East for natural gas below 30%, down from 20% in 2025.