Amid growing energy supply concerns from the prolonged Middle East war, Presidential Chief of Staff Kang Hoon-sik is visiting three countries — Kazakhstan, Oman and Saudi Arabia — to secure crude oil supplies. Minister of Trade, Industry and Energy Kim Jeong-gwan and domestic energy companies are also joining the special envoy delegation, with plans to explore a medium- to long-term restructuring of crude oil supply chains that bypass the Strait of Hormuz.
Kang said at a press briefing on the Middle East situation held at the Chunchugwan press center in Cheong Wa Dae on Monday, "I plan to depart this evening as a presidential special envoy for strategic economic cooperation." He added, "We will spare no effort to ensure that high-level discussions do not end as mere lip service." He continued, "If we can bring back even a single barrel of crude oil or a single ton of naphtha, the visit is warranted."
Among the countries the envoy delegation will visit, Saudi Arabia holds significance for securing volumes through the Red Sea port of Yanbu, Oman for diversifying shipping route risks, and Kazakhstan for broadening the supply base. "April crude oil import volumes have been secured at 59% of last year's level, and May at 69%," Kang said. "Additional procurement is continuing."
Regarding the 26 Korean ships stranded near the Strait of Hormuz, Kang said, "Crew safety is the top priority." He added, "We would like to pull them out swiftly, but we must be cautious as it could play into Iran's strategy." He stressed the need for a prudent approach, saying, "The idea of dealing with Iran one-on-one is a dangerous notion."
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As the Middle East war drags on, the government's response to the energy supply crisis appears to be shifting its center of gravity from "securing volumes" to "structural transformation." If the early-stage procurement of 24 million barrels of crude oil from the United Arab Emirates (UAE) was a measure to ease short-term anxiety, the dispatch of Presidential Chief of Staff Kang Hoon-sik as special envoy to Kazakhstan, Oman and Saudi Arabia is seen as a move focused on long-term restructuring of the crude oil supply chain.
