S. Korea: Government Cuts Middle East Oil Reliance by 2035
The government has decided to lower its reliance on crude oil from any specific region to below 50% by 2035 and significantly expand its reserve facilities. The intent is to diversify supply lines and fundamentally improve the constitution of national resource security in preparation for energy supply instability caused by external variables such as wars ...
The South Korean government aims to reduce its dependence on Middle Eastern oil to less than 50% by 2035, while simultaneously expanding its reserve facilities. This strategy is part of a broader effort to enhance national resource security and prepare for potential energy supply disruptions due to external factors like regional conflicts.
On September 23, the Ministry of Trade, Industry and Energy convened the '6th Resource Security Council,' chaired by Minister Kim Jung-kwan, to discuss and endorse a four-point plan. This plan includes reducing the reliance on oil from specific regions, such as the Middle East, to 50% or less by 2035. To achieve this, the government intends to diversify supply routes, contract methods, and crude oil and natural gas types, thereby stabilizing the supply and demand structure.
Additionally, the government plans to significantly increase its oil reserves and international joint reserves by establishing reserve facilities capable of holding 20 million barrels by 2030. The plan also involves securing additional condensate reserves to support the domestic production of naphtha. Furthermore, the government has identified 13 new critical minerals, including germanium, phosphorus, fluorite, and rare earth elements, increasing the total number of management targets from 38 to 51.
The reserve target for minerals with vulnerable supply chains has been extended from 180 days to a maximum of 365 days, reflecting a heightened focus on practical response capabilities. Minister Kim Jung-kwan stressed that resource security is crucial for national survival, particularly in the face of conflicts such as those in the Middle East.
The government's strategy seeks to strengthen the overall supply chain resilience, moving away from reactive measures that have been employed during past crises.
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