Saudi Arabia remains South Korea’s top oil supplier after Iran sanctions

South Korea has bought 209,316 barrels of oil for the first eight months of this year. (AFP)
Updated 10 October 2019

Saudi Arabia remains South Korea’s top oil supplier after Iran sanctions

  • In July, Seoul’s crude shipments from the US almost tripled to 14,782 barrels from the year before

SEOUL: Saudi Arabia remains the largest crude supplier for South Korea in the absence of Iranian oil shipments, according to customs data. 

South Korea’s oil imports from Iran were halted after the US re-imposed sanctions against the Islamic republic in May.

The statistics, released by the Korea National Oil Corporation, show that South Korea bought a total of 209,316 barrels for the first eight months of this year, representing a 7.4 percent increase from a year earlier.

The US has seen an increase in its oil supply to South Korea. The data shows South Korea imported 51 percent more crude from the US.

In July, Seoul’s crude shipments from the US, in particular, almost tripled to 14,782 barrels from the year before.

As a result, the US became South Korea’s second-largest crude oil supplier, overtaking Kuwait for the first time. Over the past eight months, South Korea has imported a total of 86,069 barrels, with the price tag of nearly $5.7 billion.

South Korea’s crude imports from Kazakhstan jumped by 39 percent from the previous year, followed by the UAE, Kuwait and Saudi Arabia. Oil imports from the UAE increased by 33.7 percent, and Kuwait by 13.8 percent.

South Korean oil refiners have been struggling to find alternative sources of condensate supply. Previously, the Iranian ultra-light oil was favored most by South Korean refiners as a raw material for making petrochemical products.

Before US sanctions were re-imposed, South Korea was the biggest buyer of Iranian condensate with a rich yield of naphtha. 

Hanwha Total Petrochemical is the first South Korean refiner to diversify its source of condensate out of Iran.

According to the company spokesman, the petrochemical firm has ordered 500,000 barrels of condensate from Saudi Arabia.

“The Saudi Arabian condensate was delivered in August, and this is our efforts to diversify the sources of condensate imports,” the spokesman said, asking not to be named. 

Hanwha Total operates a condensate splitter at its factory in South Chungcheong Province to deal with 180,000 barrels of condensate a day, he added.

Earlier, the company said it would increase imports of condensate from Australia and Russia.

Other refiners such as SK Innovation were not immediately available for comment.

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.


At Davos, innovative products point to a sustainable future

Updated 24 January 2020

At Davos, innovative products point to a sustainable future

  • A single tree that to bear 40 different types of apple

DAVOS: The World Economic Forum is not all about the fourth industrial revolution or the rise of AI.

You can also find all manner of strange and intriguing products on display from biodegradable plastic made from algae to wallpaper made from recycled corn husks.

One stand titled “How do you design a tree?” is part of a conservation effort where a single tree is designed to bear 40 different types of apple.

Another stand displays colored seaweed on a rack, showing how clothes can be dyed in a sustainable, non-chemically corrosive manner.

Propped along a large wall is Fernando Laposse’s wallpaper made of variations of purple corn husks that are reinforced with recycled cardboard and cork to create wallpaper and furniture. The husks come from corn that needs very little water and can be grown in the desert, which makes it all the more sustainable.

“This initiative helps the local economy as it brings in jobs and a resurgence of crafts and food traditions while also ensuring sustainability,” Laposse said.

Another display shows a machine that extracts pellets from a mixture of algae and starch and is used to create a thread that is the base of 3D printing. These sustainable, biodegradable plastics made from algae are being experimented with in different regions.

With the rise of deep fakes — a branch of synthetic media in which a person in an existing image or video is replaced with someone else’s likeness — another stand delivers a warning on the looming dangers of unregulated software.

The Davos forum prides itself on its sustainability, and key topics have included climate, mobility, energy and the circular economy. Everything is recyclable, and participants must download an application in order to keep up with the program and any changes — a move to cut down on paper waste.