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South Korea targets cutting Middle East crude to 50% by 2035

The plan also calls for adding about 20 million barrels to oil reserves by 2030 and limiting Middle East gas imports to no more than 30% over the next decade, OilPrice reported citing South Korea’s industry ministry.

Reported · Written up by our desk · Energy

South Korea plans to reduce its reliance on Middle East crude imports to 50% by 2035, aiming for what the country describes as a fundamental shift in how it sources energy. OilPrice reports the move is based on a drafted 10-year natural resource security plan from South Korea’s industry ministry.

The plan includes bolstering domestic oil reserves by about 20 million barrels by 2030. It comes as South Korea imports as much as 70% of its crude oil from Middle Eastern producers, with much of that supply needing to pass through the Strait of Hormuz.

South Korea also wants to limit Middle East dependence in gas, setting a goal that it does not rely on Middle Eastern producers for more than 30% of gas imports over the next ten years. OilPrice notes that gas dependence is lower than crude, with Middle Eastern imports accounting for a fifth of total gas imports last year.

OilPrice says the effort reflects concern that Hormuz disruptions can quickly tighten energy supplies for highly import-dependent economies like South Korea. In March, soon after the Persian Gulf war began, Seoul set a fuel price ceiling for the first time in three decades and imposed driving limits for civil servants as it prepared for potential fuel shortages.

Latest closeWTI crude $90.73 ▼4.1%

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