Photo : YONHAP News
The ruling Democratic Party(DP) and the government will seek to address disruptions in naphtha supply chains stemming from the Middle East crisis by redirecting petroleum product export volumes to the domestic market.
Members of a DP Middle East conflict response task force said in a news conference on Monday that the party and the government reached the agreement after setting as their top priority the task of stabilizing the supply of naphtha.
The two sides also agreed to reflect related costs in the supplementary budget that will be drafted to address the Iran war.
Petroleum product exports account for some 40 percent of total production, and the ruling camp plans to gradually reduce that amount in line with market conditions and redirect it to the domestic market to ease short-term disruptions in supply and demand.
The party and the government also agreed to seek ways to expand financial and employment support, as well as tax breaks, for the cities of Yeosu, Seosan and Ulsan, which all house petrochemical complexes.
Commenting on the recent drop in the operating rate of the Yeosu petrochemical complex’s naphtha cracking centers to the 50 percent range, the task force said it regards the situation as a sign of a structural crisis that jeopardizes the manufacturing sector and the overall economy.