South Korea intends to reduce its dependence on Middle East crude imports by 50% by 2035

South Korea wants to 'diversify its energy supply after the Iran War,' said the Industry Ministry on Wednesday.

The ministry's 10-year plan for natural resource security said that the country must make a "fundamental change" to its supply chain, citing the lessons learned from the Iran War, which choked global energy flow.

According to the Ministry, South Korea will import 70% of its oil from the Middle East by 2025. Most of this oil will be delivered via the Strait of Hormuz.

The updated strategy aims to increase crude oil stockpiles by 20 million barrels per year.

The ministry also stated that South Korea aims to secure more supplies of condensate - an ultra-light crude oil used primarily to produce naphtha. Since the Middle East conflict, South Korea has been struggling with a lack of naphtha - the "key feedstock" for petrochemicals.

According to the Ministry of Trade and Industry, South Korea imports about 45% of its naphtha needs. 77% of these supplies are typically sourced from the Middle East.

The government wants to reduce its dependence on Middle East natural gas imports to less than 30% by 2035 after it had been reduced to 20% in 2025.

As part of efforts for strengthening supply chains, the roadmap will also increase South Korea's list of?critical minerals from 38 to 51, adding 10 rare earths? and germanium.

(source: Reuters)