[Edaily Reporter Kim Hyung-wook] The government has begun discussions with Saudi Arabia’s state-owned oil company, Aramco, to expand joint crude oil stockpiling.

According to the Ministry of Trade, Industry and Energy on the 5th, Vice Minister Moon Shin-hak met with Mohammed Y. Al Qahtani, President of the Downstream Division at Saudi Aramco, who was visiting Seoul, to discuss this plan.

South Korea is currently engaged in an international joint stockpiling project that stores crude oil from Middle Eastern oil-producing countries, including Aramco, at domestic stockpiling bases operated by the Korea National Oil Corporation (KNOC), and the meeting explored the possibility of expanding the scale of this initiative.

This move signifies a strengthening of energy security cooperation between the two countries amid disruptions to shipping through the Strait of Hormuz caused by instability in the Middle East. This is because Korea can increase its strategic oil reserves for contingencies without immediate financial burden, while Aramco can secure a storage hub for exports to East Asia in the event of emergencies, such as the recent disruptions in the Strait of Hormuz.

Vice Minister Moon also expressed gratitude for Saudi Arabia’s cooperation in ensuring a stable supply of key resources, such as crude oil and naphtha, following the visit of South Korea’s Special Envoy for Strategic Economic Cooperation last April, and urged continued interest and cooperation for South Korea’s energy security.

He also requested cooperation to enable Korean companies to participate more extensively in Aramco’s local projects. #Korea Electric Power Corporation (KEPCO) recently secured contracts for the Jafurah Combined Cycle Phases 1 and 2 projects—which provide the necessary power and steam supply infrastructure for Aramco’s Jafurah natural gas field development—in collaboration with #Doosan Enerbility and others. KEPCO is also pursuing participation in follow-up combined cycle projects that Aramco plans to tender in the second half of this year.

An official from the Ministry of Trade, Industry and Energy stated, “We will continue to maintain close communication with Aramco to strengthen cooperation on resource security and support Korean companies’ efforts to secure plant contracts in the Middle East.”