As tensions between the U.S. and Iran reignite, the South Korean government anticipates no issues with naphtha supply through next month. However, it plans to secure additional quantities after September in light of potential long-term instability in the Middle East.
The Ministry of Trade, Industry and Energy held an emergency meeting on naphtha and petrochemical product supply at the Korea Chamber of Commerce and Industry on July 28. The meeting was convened to assess the domestic naphtha supply and petrochemical product availability amid rising tensions in the Middle East.
In June, the signing of a memorandum of understanding (MOU) between the U.S. and Iran had eased tensions in the region, but recent developments suggest a resurgence of conflict. Notably, Iran has recently attacked vessels in the Strait of Hormuz and declared a blockade of the waterway. Additionally, attacks on Saudi oil tankers in the Red Sea have further escalated tensions.
In response, the Ministry is proactively addressing the potential impact of worsening Middle East conditions on domestic naphtha supply by holding urgent meetings with the petrochemical industry to evaluate supply disruptions. Currently, the domestic petrochemical sector has secured naphtha supplies above last year's levels for the upcoming month. Furthermore, petrochemical inventories remain stable, indicating that the short-term impact on domestic naphtha supply is expected to be limited.
However, the government is establishing a real-time communication system with the industry to monitor the situation closely and will continue to implement supply stabilization measures. Plans are also in place to secure additional quantities as needed after September.
Yang Gi-wook, head of the Ministry's Industrial Resource Security Office, stated, "We will closely monitor the naphtha supply situation to prevent any disruptions in the production of essential goods for public health and safety due to the potential long-term instability in the Middle East. The government will do its utmost to stabilize naphtha supply."
* This article has been translated by AI.
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