South Korea plans to reduce its reliance on Middle Eastern crude oil imports to 50% by 2035, according to a 10-year natural resource security plan. The strategy also includes boosting oil reserves by 20 million barrels by 2030 and reducing dependence on Middle Eastern gas imports to 30% within the next decade.
South Korea's strategic move to diversify its energy sources away from the Middle East highlights global efforts to mitigate risks associated with critical shipping lanes like the Strait of Hormuz, potentially impacting global oil and gas flows and pricing.
South Korea is planning a significant shift in its energy import strategy, aiming to reduce its dependence on Middle Eastern crude oil to 50% by 2035. This initiative is part of a newly drafted 10-year natural resource security plan, according to a report by Reuters citing the country's industry ministry.
The plan also includes a goal to increase oil reserves by 20 million barrels by 2030. Currently, South Korea imports approximately 70% of its crude oil from Middle Eastern producers, a substantial portion of which transits through the Strait of Hormuz. The ministry highlighted this route as a point of vulnerability.
While South Korea's reliance on Middle Eastern gas is lower, accounting for about a fifth of its total gas imports last year, the country also intends to reduce this dependence to no more than 30% over the next decade. As one of the world's most import-dependent nations for energy commodities, South Korea has been particularly sensitive to disruptions, such as those experienced following the war in the Persian Gulf, which previously led to fuel price caps and driving restrictions.
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