Korea Weighs Doubling Oil Storage Expansion Amid Middle East Tensions

The South Korean government is considering expanding its strategic oil storage capacity beyond the initial plan of 20 million barrels, amid concerns over oil security in light of the Middle East conflict. The Ministry of Trade, Industry and Resources plans to announce a revised fifth oil stockpiling plan for 2026-2030 next month.

The current facilities have a capacity of 146 million barrels, but are effectively full due to maintenance and operational needs. Saudi Arabia and the United Arab Emirates are reportedly seeking to store crude in Korea's facilities, which also hold foreign companies' oil reserves. In exchange for storage fees, the Korea National Oil Corp. gets priority access to the stored crude.

Analysts note that the original expansion plan may not be enough to provide sufficient capacity to respond to an emergency. The government and private sector currently hold about 190 million barrels of oil reserves, equivalent to over 200 days of supply. However, this calculation assumes exports are halted, and if oil product exports remain at normal levels, the reserves would cover only around 68 days of demand.