Government Secures 50 Million Barrels of Crude Oil for April, 60 Million for May
The government announced it has secured 50 million barrels of crude oil for April and 60 million barrels for May through alternative routes bypassing the Strait of Hormuz, in preparation for potential instability in the Middle East's energy transport routes. This represents 60% and 70% of the typical monthly import volume (80 million barrels), respectively. Yang Ki-wook, Director of the Industrial Policy and Trade Security Office at the Ministry of Trade, Industry and Energy, explained at a briefing on the 7th that alternative crude oil is being sourced from a total of 17 countries, covering nearly all continents and oceans.
Recognizing the time lag between securing alternative crude oil and its actual arrival in the country, the government is simultaneously operating a strategic petroleum reserve swap program. This system allows refiners to borrow from the government's reserves once they prove their overseas supply acquisition, with the borrowed amount to be returned once the alternative shipment arrives. Currently, swap requests from four domestic refiners exceed 30 million barrels, an increase of approximately 10 million barrels from the 20 million barrels announced last week.
The government is also making all-out efforts to secure naphtha, a key raw material for the petrochemical industry. Director Yang stated that the estimated import volume for light naphtha in April is approximately 770,000 tons, about 70% of previous years' levels. Combined with domestic production exceeding 1.1 million tons, the government estimates that supply is currently at over 80%, potentially reaching up to 90% of normal levels.
Regarding the supply of polypropylene (PP) and polyethylene (PE), raw materials for everyday consumer goods like food packaging and instant noodle wrappers, the government is cautiously considering a ban on hoarding and profiteering. Director Yang noted that PP is a widely used material in daily life, found in items such as disposable gloves and food packaging, and that hastily implementing regulations could cause confusion in the industry. Therefore, the ministry is carefully assessing the scope of management that can be practically implemented.