South Korea Prepares for Energy Supply Disruptions Amid Mideast Tensions
The South Korean government has taken measures to prepare for potential disruptions in energy supply amid rising tensions in the Middle East. The Ministry of Trade, Industry and Resources held an emergency meeting on August 2nd, chaired by Minister Kim Jung-kwan, who is currently abroad with President Lee Jae-myung.
Minister Kim instructed refiners to use alternative routes such as the Suez Canal and Egypt's SUMED pipeline in consultation with the industry. The government has also decided to resume the strategic petroleum reserve swap system if necessary.
The ministry assessed that inventories of crude oil are secure for August-September, but may be affected after October if uncertainty over passage through key straits persists. For liquefied natural gas (LNG), more than 80% is already sourced from outside the Middle East, but domestic inventories and diversifying supplies will continue to be monitored.
The ministry also plans to launch a task force to review petrochemical intermediate supply and strengthen monitoring of key items.