South Korea to import Argentine crude from 2027 after trial shipments

South Korea intends to commence importing crude oil from Argentina in 2027, following successful trial shipments and feedstock testing by domestic refining and petrochemical firms, as reported by multiple government ministries and industry sources between August 4-11. This move aims to reduce the country's reliance on Middle Eastern sour crude, by diversifying its supply sources beyond the Persian Gulf, according to the Ministry of Trade, Industry and Resources, the Ministry of Foreign Affairs, and the Presidential Office.

The cooperation between the two nations also extends to exploring broader energy partnerships in natural gas and nuclear power, though the specific import volume has not been disclosed. This decision aligns with South Korea's broader strategy to lessen its dependence on Middle Eastern crude, as it currently sources a significant portion of its crude intake from the region, accounting for 62% of its total crude imports in the first half of 2026.

South Korea has not imported Argentine crude since purchasing 300,000 barrels in October 2010, according to a feedstock manager at a Ulsan-based refiner, citing data from the Korea National Oil Corp. The planned Argentine supply would introduce another non-Middle Eastern source to South Korea's refining industry feedstock procurement mix, potentially enhancing resilience against geopolitical disruptions affecting traditional shipping routes.

Among Argentina's export crude grades, Medanito crude has gained traction among several East Asian buyers in recent trading cycles, with spot cargoes for delivery in the late third quarter and early fourth quarter being sold in the Far East Asian market. A few spot deals, including one for a shipment headed to Taiwan's CPC Corp., have been concluded in the Far East Asian market.

The light sweet crude, produced in Vaca Muerta, has a gravity of approximately 40.8 API and a sulfur content of about 0.15%, similar in quality to WTI Midland.