The Ministry of Trade, Industry and Resources said on the 14th that "there are countries in the Middle East oil-producing region that have contacted us saying they want to use Korea's crude oil stockpiling bases." As oil-producing countries face difficulties exporting crude due to the closure of the Strait of Hormuz amid the Middle East crisis, demand is growing to use Northeast Asia as a stockpiling hub. The Korean government can also exercise a right of first refusal to purchase foreign crude stored in domestic stockpiling bases, which could help secure volumes in an emergency.
Yang Ki-uk, Deputy Minister for Energy Security at the Ministry of Trade, Industry and Resources, said at a regular briefing on the Middle East situation the same day, "Interest from the Middle East in using Northeast Asia's crude oil stockpiling bases has increased, and they are asking us for consultations." He added, "Because crude oil exports account for a high share of Middle Eastern economies, they believe they can reduce risk if they can place goods outside Hormuz and sell them. That's why interest is high in using offshore stockpiling bases, especially in Northeast Asia."
Korea National Oil Corporation (KNOC) earns rental revenue by storing overseas corporations' oil at domestic facilities through the "international joint stockpiling program." For a portion of the oil stockpiled this way, Korea has a right of first refusal to buy before other countries. Deputy Minister Yang said, "Talks have already been held with the United Arab Emirates (UAE), and there are other countries as well." He added, "If oil-producing countries use domestic crude stockpiling bases, it effectively increases the domestic stockpile, and it can also help in negotiations to secure alternative volumes."