Tanker trucks pass through the entrance of Korea Pipeline Co.'s Gyeongin branch storage facility in Goyang, Gyeonggi Province. [Yonhap]
Tanker trucks pass through the entrance of Korea Pipeline Co.'s Gyeongin branch storage facility in Goyang, Gyeonggi Province. [Yonhap]

South Korea's Ministry of Trade, Industry and Energy said Monday it will extend its strategic petroleum reserve swap program through June, stretching a scheme originally set to run through April and May, to cushion disruptions to crude oil supply and refined product production caused by the prolonged Middle East war.

The decision reflects continued uncertainty over when normal navigation through the Strait of Hormuz will resume. The ministry said it has carried out swaps covering approximately 21 million barrels and is currently repaying them in stages.

Under the reserve swap system, the government lends refiners petroleum from its strategic stockpile once they demonstrate they have secured crude oil from overseas, and recovers the equivalent volume when the replacement supply arrives domestically.

The program was introduced to bridge the time lag between disruptions to Middle Eastern crude supply and the arrival of alternative crude secured by refiners.

The ministry also said raw material inventories for the health and medical sector — including IV bag packaging, syringes and medical gloves — are being maintained at normal peacetime levels.

For IV bag packaging specifically, the ministry said it is working to ensure supply remains uninterrupted through the end of June and is pursuing alternative sourcing options.

Raw materials needed for key industries such as semiconductors, automobiles and shipbuilding — including helium, hydrogen bromide and aluminum wheels — also show no signs of supply disruption, the ministry said.


oskymoon@heraldcorp.com