South Korea aims to cut Middle East crude oil reliance to 50% by 2035

by@Reuters

Summary

South Korea plans to cut its reliance on crude oil from the Middle East to 50% by 2035, a move announced by the Industry Ministry as part of a broader strategy to diversify energy supplies following disruptions from the Iran war. In 2025, South Korea sourced 70% of its oil imports from the region, primarily through the Strait of Hormuz. The new strategy also includes increasing crude oil stockpiles and securing more condensate to address shortages in naphtha, which is crucial for the petrochemical industry. Additionally, the country aims to lower its dependence on Middle Eastern natural gas to under 30% by 2035. This initiative aligns with recent discussions between South Korea's President Lee Jae Myung and US President Donald Trump on advancing strategic investment projects, emphasizing cooperation in energy and economic objectives.

Analysis

South Korea: South Korea is a major East Asian economy heavily dependent on energy imports to fuel its industrial and petrochemical sectors. The country is advancing a long-term natural resources security plan to diversify crude oil and natural gas supplies away from the Middle East in response to recent global energy disruptions from the Iran war. Donald Trump: Donald Trump is the President of the United States. He met with South Korean President Lee Jae Myung to welcome progress on strategic investment projects, supporting broader international cooperation on energy security matters. Lee Jae Myung: Lee Jae Myung serves as the President of South Korea. He participated in discussions with US President Donald Trump on strategic investment projects during the UN General Assembly, aligning with national efforts to strengthen energy supply chains. Energy Security: Recent disruptions from the Iran war have prompted South Korea to pursue a fundamental shift in its energy supply chains and reduce dependence on Middle East sources. Supply Chain Resilience: South Korea is broadening its focus on critical minerals such as rare earths and germanium to support semiconductor production and overall resource security. International Cooperation: South Korean and US leadership held discussions on strategic investment projects during the UN General Assembly to advance shared energy and economic objectives.

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