2.1 Million Tons of Naphtha Secured, Plus Three Months’ Worth of Crude Oil

Kang Hoon-sik, serving as Presidential Special Envoy for Strategic Economic Cooperation for South Korean President Lee Jae Myung, has returned from visits to four countries in the Middle East and Central Asia with agreements to secure an additional 273 million barrels of crude oil and 2.1 million tons of naphtha, a key feedstock for the petrochemical industry. The crude oil volume is equivalent to about three months of normal domestic consumption, while the naphtha corresponds to roughly one month of imports. He stressed that all of these volumes were secured through alternative supply routes that are unrelated to any potential blockade of the Strait of Hormuz. In addition, major oil-producing countries have continued to express interest in expanding the International Joint Oil Stockpiling Program using South Korea’s oil storage facilities, raising the possibility of increased joint stockpiling.
At a briefing held on the 15th at Chunchugwan, the press briefing room at Cheong Wa Dae, Kang Hoon-sik said, "From the 7th to the 14th, I visited four countries — Kazakhstan, a resource-rich Central Asian state, and Oman, the Kingdom of Saudi Arabia, and Qatar, which are major energy suppliers in the Middle East — to discuss ways to secure crude oil and naphtha." He added, "We have arranged for the import of 273 million barrels of crude oil by the end of this year, and secured up to an additional 2.1 million tons of naphtha through year-end." He noted that this additional crude and naphtha could be secured thanks to coordinated efforts by the presidential office, the Ministry of Trade, Industry and Resources (MOTIR), the Ministry of Foreign Affairs of the Republic of Korea, Korea National Oil Corporation (KNOC), and other public institutions, as well as the companies that actually import crude oil and naphtha.
Kang Hoon-sik stated, "Because the crude oil and naphtha we have secured this time will be imported via alternative supply routes that are unrelated to any blockade of the Strait of Hormuz, they will make a direct and tangible contribution to stabilizing supply and demand at home."
The process of securing additional crude oil and naphtha was not entirely smooth, according to accounts from the delegation. Kang Hoon-sik remarked, "In truth, the negotiations were not easy. From each country’s perspective, it is very difficult to allocate additional volumes, and even honoring existing commitments is challenging under the current circumstances. We are, after all, in a wartime situation," adding, "We did our utmost in good faith, and I cautiously believe that sincerity may have played a part in the outcome."
In Kazakhstan, Kang Hoon-sik paid a courtesy call on President Kassym-Jomart Tokayev and delivered a personal letter from President Lee. He noted that "South Korea is so far the only country whose request for a courtesy call has been accepted by the president." In Oman, he met with Theyazin bin Haitham Al Said, deputy prime minister for economic affairs and crown prince, the eldest son of Sultan Haitham bin Tariq Al Said.
In the Kingdom of Saudi Arabia, the delegation achieved an agreement to supply 200 million barrels of crude oil and more than 500,000 tons of naphtha by the end of the year. Kang Hoon-sik first met with Prince Faisal bin Farhan, the foreign minister, and then held talks with Abdulaziz bin Salman Al Saud, the energy minister, where he underscored the importance of bilateral economic cooperation not only in energy but also in automobiles, shipbuilding, and petrochemicals.
Qatar was not on the original itinerary, but after the delegation received news of a cease-fire agreement early on the morning of the 8th, it urgently sought a visit from the field. Kang Hoon-sik explained, "The special envoy delegation paid a courtesy call on Emir Tamim bin Hamad Al Thani and delivered a personal letter from President Lee," adding, "We conveyed our hope that, once the Strait of Hormuz is reopened, Qatar’s Liquefied Natural Gas (LNG) export contracts with South Korea will be carried out on schedule and without disruption."
Kang Hoon-sik said, "With oil-producing countries such as the Kingdom of Saudi Arabia and Oman, we also held in-depth discussions on various forms of cooperation aimed at fundamentally addressing the risks posed by a blockade of the Strait of Hormuz, including bypass pipelines and the construction of oil storage facilities outside the Strait of Hormuz." He emphasized, "Middle Eastern oil producers continue to show strong interest in expanding the International Joint Oil Stockpiling Program that utilizes South Korea’s oil storage facilities." He went on to say, "Since the latest supplementary budget includes funding to expand storage capacity at our domestic oil stockpiling base, we expect that joint stockpiling with major oil producers will increase, enabling us to secure stable crude oil supplies even in emergency situations."
cjk@fnnews.com Choi Jong-geun, Sung Seok-woo Reporter