At a daily briefing at the government complex in the administrative city of Sejong, Yang Gi-uk, a ministry official, said the country's four major refiners had applied to swap more than 30 million barrels of crude oil, with two deals completed under which about 2.8 million barrels have already been delivered.
"With at least four additional contracts scheduled for this week, total swapped volumes are expected to reach about 8 million barrels by the end of the week," Yang added.
The program was launched on March 31 to ease supply disruptions by lending government oil reserves to refiners, who will be required to replenish them once they have secured their own supplies. Under the program, refiners who have faced difficulties importing Middle Eastern crude due to the closure of the Strait of Hormuz is able to secure substitute supplies.
The program was launched on March 31 to ease supply disruptions by lending government oil reserves to refiners, which are required to replenish them once they secure their own supplies. Under the program, refiners facing difficulties importing Middle Eastern crude due to the closure of the Strait of Hormuz can secure alternative supplies.
Meanwhile, the government has secured about 50 million barrels of alternative oil supplies for April and about 60 million barrels for May, equivalent to roughly 60 percent and 70 percent of typical levels, with supplies sourced from countries including Australia, Brazil, Saudi Arabia, the United Arab Emirates and the U.S.
Naphtha supplies are also at about 70 percent of normal levels. "Imports of light naphtha stood at roughly 1.16 million tons last year, while expected imports for April are about 770,000 tons. Factoring in approximately 1.1 million tons produced domestically, overall supply is at more than 80 percent of typical levels," Yang said.
Stressing the need to ensure a steady naphtha supply, he said the ministry will seek additional sources through measures financed by a supplementary budget.
The ministry, however, said that key raw materials are being supplied stably despite surging petroleum prices and shortages of some packaging materials, pledging to keep monitoring high-demand items such as packaging for instant noodles and powdered milk, as well as trash bags.
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