As tensions in the Middle East escalate following the attack on Saudi Arabia's East-West oil pipeline, the South Korean government has conducted an emergency review of domestic oil supply and tanker operations. The refining industry reported that it has secured over 90% of the oil needed for September and October compared to the same period last year, indicating limited short-term supply impacts.
The Ministry of Trade, Industry and Energy held an emergency meeting on oil supply status on the 14th, chaired by Deputy Minister Moon Shin-hak, to discuss the current oil supply situation and future public-private response strategies.
This meeting was convened amid ongoing hostilities between the U.S. and Iran, as well as attacks by Yemen's Houthi rebels on Saudi oil facilities and incursions into the Perim Island area, which have heightened tensions in the Strait of Hormuz and the Red Sea. The attack on the Saudi East-West pipeline raises concerns about potential disruptions to oil supply and transportation.
The East-West pipeline transports oil from the eastern region of Saudi Arabia to the port of Yanbu on the Red Sea, serving as a key export route that bypasses the Strait of Hormuz. The recent attack has put even alternative transport routes, previously considered safe from the strait's navigation risks, in jeopardy.
According to the refining industry, the current stockpiles indicate that short-term impacts on domestic oil supply will be limited. The oil imported during July and August exceeded 100% of the volume from the same period last year, and the quantities secured for September and October are also over 90% compared to the previous year.
The Ministry plans to monitor the supply situation in real-time through a communication and inspection system established between the government, the refining industry, and the shipping sector since the onset of the Middle East crisis. It will continue to assess the situation in the Middle East and the status of operations at the Saudi pipeline, while actively supporting transitions to alternative routes such as the Suez Canal.
The government will also utilize the strategic oil swap system reinstated on August 24 as a response measure. It has committed to mobilizing all available policy tools, including the oil swap, to address any disruptions in oil imports.
Plans are in place to expand support for alleviating transportation cost burdens arising from diversifying oil import routes. The government aims to increase support for the differential freight costs associated with diversification and assist the refining industry in securing alternative supplies smoothly.
Deputy Minister Moon Shin-hak stated, "The government and the refining and shipping industries will maintain close communication to ensure there is no disruption to the public's daily lives, thoroughly monitoring supply trends. We will expand support for the differential freight costs associated with diversification, in addition to the oil swap system, through active consultations with relevant ministries." He added, "We will support the industry in securing alternative supplies and will continue to maintain the current level of diversification in oil imports."
* This article has been translated by AI.
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