Condensate prices likely to rise after Iran oil sanctions
- 5 years ago
결국 막힌 이란 원유… 미리 대비한 업계, 걱정은 '초경질유'
The ban on Iranian oil is expected to hit South Korea's petrochemical industry, which relies on Iran as a source of ultralight oil, or condensate.
Our KIM Da-mi tells us more.
The South Korean oil industry has been preparing for the worst-case scenario -- a complete ban on Iran's oil exports.
Since as far back as 2012 when Iran was previously subject to U.S. sanctions, South Korean oil companies have been gradually decreasing their dependence on Iranian oil by seeking alternative importers.
The country’s crude oil imports from Iran for the first two months of 2019 totaled only 61 percent of the amount imported during the same period the previous year.
Domestic oil companies including Hyundai Oilbank and SK energy have already diversified their crude oil supplies.
However, there are concerns as the South Korean petrochemical industry heavily relies on Iranian condensate.
Condensate, an ultra-light form of crude oil, is used for producing naphtha, the basic raw material for many petrochemical products, including clothing and footwear.
In addition, South Korea's oil industry has favored Iranian condensate, which is between two and six dollars cheaper per barrel than condensate from other countries.
“There’s a limited number of countries that can replace Iran and its oil like Qatar, Norway and Japan. And because of the short supply, rising prices of oil with condensate will be inevitable.”
While companies will now seek alternative sources of condensate,... experts note that importing naphtha instead of condensate can be one option, as there are more countries willing to sell naphtha.
KIM Da-mi, Arirang News.
The ban on Iranian oil is expected to hit South Korea's petrochemical industry, which relies on Iran as a source of ultralight oil, or condensate.
Our KIM Da-mi tells us more.
The South Korean oil industry has been preparing for the worst-case scenario -- a complete ban on Iran's oil exports.
Since as far back as 2012 when Iran was previously subject to U.S. sanctions, South Korean oil companies have been gradually decreasing their dependence on Iranian oil by seeking alternative importers.
The country’s crude oil imports from Iran for the first two months of 2019 totaled only 61 percent of the amount imported during the same period the previous year.
Domestic oil companies including Hyundai Oilbank and SK energy have already diversified their crude oil supplies.
However, there are concerns as the South Korean petrochemical industry heavily relies on Iranian condensate.
Condensate, an ultra-light form of crude oil, is used for producing naphtha, the basic raw material for many petrochemical products, including clothing and footwear.
In addition, South Korea's oil industry has favored Iranian condensate, which is between two and six dollars cheaper per barrel than condensate from other countries.
“There’s a limited number of countries that can replace Iran and its oil like Qatar, Norway and Japan. And because of the short supply, rising prices of oil with condensate will be inevitable.”
While companies will now seek alternative sources of condensate,... experts note that importing naphtha instead of condensate can be one option, as there are more countries willing to sell naphtha.
KIM Da-mi, Arirang News.