South Korea plans to cut Middle East crude oil imports to 50pct by 2035

Seoul, South Korea's capital city, announced on Wednesday that the country intends to decrease its reliance on Middle Eastern crude oil imports to 50 percent by 2035. The Industry Ministry unveiled a 10-year natural resources security plan, which emphasizes the necessity for a significant shift in supply chains, inspired by the disruptions experienced during the Iran war. Currently, South Korea derives 70 percent of its oil supply from the Middle East, primarily through the Strait of Hormuz, according to the ministry.

To align with this updated strategy, South Korea plans to augment its crude oil stockpile by approximately 20 million barrels by 2030. Additionally, the nation seeks to secure supplementary condensate supplies, a light oil extensively utilized in the production of naphtha, a crucial component for petrochemicals. As of now, South Korea imports roughly 45 percent of its naphtha demand, with 77 percent of these imports originating from the Middle East.

In terms of natural gas, the government aims to limit its dependence on Middle Eastern imports to under 30 percent by 2035, having already reduced this figure to 20 percent in 2025. The roadmap also entails expanding South Korea's list of critical minerals from 38 to 51, incorporating ten rare earths and germanium, a vital element in the fabrication of semiconductors, as part of its efforts to fortify supply chains.