Korean Minister of Trade, Industry and Energy Kim Jeong-kwan conducted an urgent review of the supply situation for key resources such as oil, gas, and naphtha in preparation for the worst-case scenario where navigation through the Strait of Hormuz and the Bab-el-Mandeb Strait is disrupted simultaneously. He instructed officials to be ready to mobilize available policy measures, including the use of alternative shipping routes and the resumption of oil stock swaps.
The Ministry of Trade, Industry and Energy announced that Minister Kim chaired an emergency meeting via video conference on the 'Economic Impact of the Middle East Conflict' on the afternoon of August 2 (Korean time) from Frankfurt.
During the meeting, officials assessed the current status of resource imports, inventory levels, and the availability of alternative supplies. They focused on supply measures for each item, assuming a scenario where navigation through both the Strait of Hormuz and the Bab-el-Mandeb Strait is compromised.
According to the ministry, oil imports for August and September are expected to exceed last year's average. The October imports are also being secured in phases, indicating that the short-term supply impact is likely to be limited. However, the ministry plans to prepare for additional imports after October in case the navigation uncertainties persist.
Minister Kim directed the refining industry to closely consult on the potential use of alternative routes, such as the Suez Canal and the Sumed pipeline in Egypt, and to resume oil stock swaps immediately if necessary.
For gas, over 80% of the total liquefied natural gas (LNG) imports come from non-Middle Eastern regions, and the ministry assessed that stable supply capabilities are being maintained through spot purchases and overseas resource development. The ministry explained that even if imports of Qatari LNG continue to be suspended, they can respond for a considerable period.
The government is continuously monitoring the import situation through alternative supply lines from Southeast Asia, Australia, and North America, while also ensuring stable management of domestic inventories in case of emergencies.
Naphtha imports for August are secured at last year's average levels, with September quantities also being secured. The government plans to continue existing supply stabilization measures in response to price pressures from rising international oil prices and is preparing to secure additional quantities after September.
The inventory of petrochemical products is currently stable. However, to prepare for the possibility of prolonged uncertainties in naphtha imports and maritime transport, the ministry will enhance the operation of the 'Petrochemical Intermediate Product Supply Monitoring Task Force' and expand monitoring of key items.
Minister Kim emphasized, "The navigation conditions of major maritime transport routes are very fluid," and urged officials to continuously monitor and manage the supply situation in real-time, considering the worst-case scenario of both the Strait of Hormuz and the Bab-el-Mandeb Strait being blocked.
He further instructed, "In the event of a crisis, ensure thorough preparation to mobilize all available policy capabilities, including the use of alternative routes and oil stock swaps."
The Ministry of Trade, Industry and Energy announced that Minister Kim chaired an emergency meeting via video conference on the 'Economic Impact of the Middle East Conflict' on the afternoon of August 2 (Korean time) from Frankfurt.
During the meeting, officials assessed the current status of resource imports, inventory levels, and the availability of alternative supplies. They focused on supply measures for each item, assuming a scenario where navigation through both the Strait of Hormuz and the Bab-el-Mandeb Strait is compromised.
According to the ministry, oil imports for August and September are expected to exceed last year's average. The October imports are also being secured in phases, indicating that the short-term supply impact is likely to be limited. However, the ministry plans to prepare for additional imports after October in case the navigation uncertainties persist.
Minister Kim directed the refining industry to closely consult on the potential use of alternative routes, such as the Suez Canal and the Sumed pipeline in Egypt, and to resume oil stock swaps immediately if necessary.
For gas, over 80% of the total liquefied natural gas (LNG) imports come from non-Middle Eastern regions, and the ministry assessed that stable supply capabilities are being maintained through spot purchases and overseas resource development. The ministry explained that even if imports of Qatari LNG continue to be suspended, they can respond for a considerable period.
The government is continuously monitoring the import situation through alternative supply lines from Southeast Asia, Australia, and North America, while also ensuring stable management of domestic inventories in case of emergencies.
Naphtha imports for August are secured at last year's average levels, with September quantities also being secured. The government plans to continue existing supply stabilization measures in response to price pressures from rising international oil prices and is preparing to secure additional quantities after September.
The inventory of petrochemical products is currently stable. However, to prepare for the possibility of prolonged uncertainties in naphtha imports and maritime transport, the ministry will enhance the operation of the 'Petrochemical Intermediate Product Supply Monitoring Task Force' and expand monitoring of key items.
Minister Kim emphasized, "The navigation conditions of major maritime transport routes are very fluid," and urged officials to continuously monitor and manage the supply situation in real-time, considering the worst-case scenario of both the Strait of Hormuz and the Bab-el-Mandeb Strait being blocked.
He further instructed, "In the event of a crisis, ensure thorough preparation to mobilize all available policy capabilities, including the use of alternative routes and oil stock swaps."
* This article has been translated by AI.
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