South Korea halts Iranian oil imports as sanction waivers cease

South Korea's top refiner SK Energy's main factory is seen in Ulsan, about 410 km (southeast of Seoul. (REUTERS/File Photo)
Updated 17 June 2019

South Korea halts Iranian oil imports as sanction waivers cease

  • Government plans to extend freight rebates for shipments of non-Middle East crude to the end of 2021

SEOUL: South Korea has turned to alternative sources to replace its oil imports from Iran, which were halted in May when waivers on US sanctions against the Islamic republic expired, officials told Arab News on Sunday.

South Korea is the world’s fifth-largest crude oil importer, and was one of the countries granted a waiver by the US when President Donald Trump’s administration re-imposed sanctions on Iran last November.

Customs data shows South Korea’s imports of Iranian crude for January through May were 3.87 million tonnes, or 187,179 barrels per day (bpd), compared to 5.45 million tonnes over the same period last year.

South Korea is the biggest buyer of Iranian condensate, an ultra-light oil that is low in sulfur and produces no residue, and is used as a raw material for the manufacture of petrochemicals. Iranian condensate is also cheaper than condensate from other countries, such as Qatar, and provides a higher yield of heavy naptha — , a raw material for the production of petrochemicals including paraxylene, which is used the manufacture of plastic bottles.

SK Incheon Petrochem, Hyundai Oilbank and Hanwha Total Petrochemical have turned to other countries, including Qatar and Russia, to replace Iranian condensate, according to industry sources.

Last year, South Korea bought and tested as many as 23 different types of condensate from 15 countries as possible substitutes for condensate from Iran, at a cost of around $9 billion, government and trade data
showed.

South Korean petrochemical makers bought condensate from gas fields in Africa and Europe, in addition to tapping more supplies from Qatar, Saudi Arabia, the US and Australia.

“We’ve increased imports of condensate from Qatar, Australia and Russia,” an employee of Hanwha Total Petrochemical told Arab News, on condition of anonymity. “We also started buying oil from the Republic of Equatorial Guinea.”

The refiner has also raised its imports of heavy naphtha in the absence of Iranian condensate, he added.

According to customs data, South Korea’s Qatari crude oil imports rose 10.1 percent year-on-year to 660,752 tonnes, or 155,596 bpd in May, while oil shipments from Saudi Arabia rose 5.1 percent to 3.39 million tonnes, or 798,695 bpd. Meanwhile, imports of crude oil from the US more than tripled.

In an effort to help local refiners find alternative oil supplies, the South Korean government plans to extend freight rebates for shipments of non-Middle East crude to the end of 2021, according to the Ministry of Trade, Industry and Energy.

 


UK PM says schools must open in September

Updated 09 August 2020

UK PM says schools must open in September

  • A study has warned that Britain risks a second wave of COVID-19 this winter if schools open without an improved test-and-trace system
  • The government wants all pupils to return to school by early September

LONDON: British Prime Minister Boris Johnson said reopening schools in September was a social, economic and moral imperative and insisted they would be able to operate safely despite the ongoing threat from the pandemic.
His comments follow a study earlier this month which warned that Britain risks a second wave of COVID-19 this winter twice as large as the initial outbreak if schools open without an improved test-and-trace system.
Writing in the Mail on Sunday, Johnson said restarting schools was a national priority. Schools would be the last places to close in future local lockdowns, he was quoted by another newspaper as telling a meeting on Thursday.
Schools in England closed in March during a national lockdown, except for the children of key workers, and reopened in June for a small number of pupils.
The government wants all pupils to return to school by early September in what Johnson has called a “national priority.”
“Keeping our schools closed a moment longer than absolutely necessary is socially intolerable, economically unsustainable and morally indefensible,” Johnson wrote.
The economic costs for parents who cannot work if schools are shut are spiralling, and the country faces big problems if children miss out on education, the prime minister warned.
“This pandemic isn’t over, and the last thing any of us can afford to do is become complacent. But now that we know enough to reopen schools to all pupils safely, we have a moral duty to do so,” he wrote.
The Sunday Times newspaper reported that he has ordered a public relations campaign to ensure schools open on time and told the meeting last week that they should be the last places to close behind restaurants, pubs and shops.