Kang Hoon-sik, chief of staff to the president, who toured four Middle Eastern countries as Lee Jae-myung's special envoy for strategic economic cooperation, said he received a pledge to import 273 million barrels of crude oil from those nations by the end of this year. That is three months' worth under normal conditions, not an emergency economic measure. The shipments will come via alternative routes that do not pass through the Strait of Hormuz. He also secured 2.1 million tons (t) of naphtha, an essential petrochemical feedstock, equal to more than half of Korea's monthly average usage (4 million t).
Earlier, Kang set out on the 7th to secure crude oil and naphtha amid worsening supply instability due to the Middle East war. He had planned to visit three countries—Kazakhstan, Oman and Saudi Arabia—but added a Qatar stop on site, making it four in total.
At a briefing that day, Kang said, "We visited three Middle Eastern countries and Kazakhstan, a Central Asian resource-rich nation, to discuss ways to secure crude oil and naphtha," and added, "We delivered a personal letter from President Lee Jae-myung conveying deep concern about the Middle East war and the sincere condolences and solidarity of our people."
◇Saudi 50 million, Kazakhstan 18 million, Oman 5 million barrels…to be loaded this month
The much-watched crude oil imports were finalized at 273 million barrels by year-end. Kang said, "This is a volume that can be used for more than three months with the economy operating normally without separate emergency measures," and added, "Because it is through alternative supply lines unrelated to Hormuz, it can make a tangible contribution to stabilizing domestic supply and demand." The 2.1 million tons of naphtha is one month's imports for Korea.
Specifically, he secured 18 million barrels of crude oil from Kazakhstan and received a commitment from Oman to supply 5 million barrels of crude and 1.6 million t of naphtha. Kang said, "Kazakhstan designated an international cooperation investment director dedicated to the Republic of Korea, and we agreed to strengthen cooperation in various fields such as mineral resources, urban development and plants," adding, "Oman also said it was the first time, like with Korea, that the government had directly reached out and promised to accommodate us as much as possible."
From Saudi Arabia, he secured 50 million barrels of crude and 500,000 t of naphtha. Kang said, "We received a pledge to load the volumes without disruption through alternative ports adjacent to the Red Sea in April–May." He also said that from late June through year-end, 200 million barrels of crude will be preferentially allocated to Korean corporations and loaded.
He said that during the "surprise visit" to Qatar, he also received a pledge for top-priority LNG (liquefied natural gas) exports. Kang said, "We urgently pushed for the visit on site and made it happen," and added, "As soon as the Strait of Hormuz reopens, Qatar will export LNG to Korea on a top-priority basis." He also said Seoul discussed cooperation plans with Saudi Arabia and Oman on "establishing oil storage facilities outside Hormuz," adding there was "an in-depth exchange of views."