South Korea Pivots Energy Strategy Away From Middle East Dependence

Between January and August, data from the Korea National Oil Corp. revealed that Saudi crude accounted for 29.9% of total imports. While the Kingdom remains the primary supplier, the shift marks a departure from traditional reliance patterns. Refiners began pivoting in March after the conflict in Iran effectively paralyzed shipping routes, causing freight costs to surge and stranding critical cargo.

To fill the gap, South Korea has turned toward North American markets. Imports of U.S. crude surpassed 20% of the total volume in April, a threshold maintained throughout the summer. Furthermore, a June agreement with Canada will see South Korean crude imports from the country triple this year, complemented by increased long-term commitments for Canadian LNG. The Ministry of Industry has set a clear trajectory: reducing the nation’s dependence on Middle Eastern crude from the current 70% to 50% by 2035.