SEOUL, March 20 (AJP) - The government is reviewing additional measures to cope with supply chain disruptions as the prolonged conflict in the Middle East affects supplies of naphtha and other petrochemical products, Cheong Wa Dae said on Friday.
The remarks came after Iran's attack on Qatar's Ras Laffan Industrial City, the world's largest liquefied natural gas (LNG) complex, which accounts for about 20 percent of global supply.
According to a senior Cheong Wa Dae official, South Korea is unlikely to face supply disruptions as it has alternative sources of gas. He added, "When it comes to liquefied natural gas supplies from Qatar, there is no problem with supply, as Qatar accounts for just 14 percent of imports this year and alternative sources are available."
But the government is keeping a close watch on naphtha supply and prices to prepare for any potential disruptions. It also plans to implement measures to minimize overseas outflows of naphtha.
QatarEnergy, Qatar's state-run petroleum company, said the previous day it may have to declare force majeure due to the attack on its LNG facilities earlier in the week, affecting long-term supply contracts with South Korea and other countries for up to five years.
Force majeure is a measure taken to avoid liability when fulfilling a contract becomes difficult due to war, natural disasters, or other events.
The remarks came after Iran's attack on Qatar's Ras Laffan Industrial City, the world's largest liquefied natural gas (LNG) complex, which accounts for about 20 percent of global supply.
According to a senior Cheong Wa Dae official, South Korea is unlikely to face supply disruptions as it has alternative sources of gas. He added, "When it comes to liquefied natural gas supplies from Qatar, there is no problem with supply, as Qatar accounts for just 14 percent of imports this year and alternative sources are available."
But the government is keeping a close watch on naphtha supply and prices to prepare for any potential disruptions. It also plans to implement measures to minimize overseas outflows of naphtha.
QatarEnergy, Qatar's state-run petroleum company, said the previous day it may have to declare force majeure due to the attack on its LNG facilities earlier in the week, affecting long-term supply contracts with South Korea and other countries for up to five years.
Force majeure is a measure taken to avoid liability when fulfilling a contract becomes difficult due to war, natural disasters, or other events.
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