Asia's dependence on Middle East oil and LNG
Asia is highly dependent on Middle East oil and gas, which makes it vulnerable to a prolonged disruption of supply if the conflict that has erupted following the Israeli and U.S. attacks on Iran continues.
Here is an overview of the imports and stocks for major Asian buyers who buy Middle Eastern oil and natural gas.
CHINA China is currently the largest crude oil importer in the world and also the biggest buyer of Iranian crude. However, record amounts of crude are stored in strategic and floating stockpiles which limit the risk of shortages.
About half of China's crude oil imports are from the Middle East.
According to Kpler's figures, the country imported about 13% or 1,38 million barrels of Iranian crude oil per day last year. Late January, another 42 million barrels were stored on tankers across Asia. China has spent many years building its strategic reserves. It has built new storage facilities and bought crude oil from the global market that was in surplus. Beijing is very careful about the size of its reserves. Analysts estimate that it's around 900,000,000 barrels or just over three months worth of imports.
China is also the largest importer in the world of liquefied gas. Around a third comes from the Middle East.
Around 95% of Japan's oil imports come from the Middle East, and 70% of that passes through the Strait of Hormuz.
Japan imported 2.8 millions barrels of crude oil per day from Saudi Arabia in January. 1.6 million barrels per day came from Kuwait, Qatar, the United Arab Emirates and Saudi Arabia.
Japan has emergency oil reserves equal to 254 days' consumption.
Japan, as the second largest liquefied gas importer in the world, sourced?40% or 25,8 million metric tonnes of its supply last year from Australia. Japan imports 11% of its LNG from Middle East countries, including Qatar, Oman and UAE.
Minoru Kihara, the Chief Cabinet Secretary, said that Japanese companies had LNG stocks equivalent to three weeks' consumption. Japan trades about 40 million tons LNG per year and could bring some back to Japan in an emergency.
SOUTH KOREAN
According to data from the Korea International Trade Association, South Korea imports about 70% of its oil and around 20% of its LNG. The South Korean industry ministry announced in December that the country's strategic petroleum reserves totaled 100 million barrels. Private sector reserves of 95 million barrels are also held by the private sector. An official from the South Korean government said that on Monday, the combined stockpile of the country was enough to cover 208 days' worth of consumption.
The ministry announced on Sunday that if the supply disruptions continue, it will try to obtain additional volumes from countries outside of the Middle East.
INDIA In January, the share of Middle Eastern oil imported by India rose to its highest level since late 2022 at 55% or 2.74 million barrels of crude oil per day as refiners reduced Russian oil.
Last month, Oil Minister Hardeep Singh Puri informed lawmakers that India's crude and refined fuels inventories, including those held by companies and strategic petroleum reserves, could meet the demand for about 74 days. Refining sources said that India's current crude and refined fuel stock could last about 20-25days.
According to Kpler, India is the fourth-largest LNG importer. It buys two-thirds from Qatar, Oman and the UAE. (Reporting from Katya Glubkova, Joyce Lee, Lewis Jackson, and Sam Li, in Beijing; Nidhh Verma, in New Delhi; Emily Chow, in Singapore. Editing by Barbara Lewis.
(source: Reuters)
