"Ensuring Stable Naphtha Supply"... Ministry of Trade, Industry and Energy Reviews Safety and Supply Chain in Petrochemical Industry

Inspection of On-Site Safety Management and Raw Material Supply

Government to Support 50% of Naphtha Import Price Differential

"Secured Volume Expected to Recover to 90% in May"

Yonhap News

The Ministry of Trade, Industry and Energy held a meeting with the petrochemical industry on May 8 to conduct a comprehensive review of on-site safety management at production sites, the supply and demand situation for naphtha, and production trends of major petrochemical products.

At this meeting, presided over by Yang Ki-uk, Director General for Industrial Resource Security at the Ministry, participants discussed response measures to maintain supply chain stability without production disruptions or safety incidents, even amid the prolonged instability in the Middle East.

The industry pledged to ensure thorough safety management at production sites while responding to risks in the Middle East and stabilizing supply chains. Given that accidents at petrochemical plants can lead to large-scale casualties and property damage, companies are operating safety management systems in accordance with relevant laws, including the Serious Accidents Punishment Act, the Occupational Safety and Health Act, and the Chemicals Control Act.

The government is also supporting the industry’s efforts to strengthen safety management through the “Advanced Safety Management Plus Project.” The Ministry of Trade, Industry and Energy has allocated a budget of 5.5 billion won for related projects for next year.

The meeting also included a review of the current naphtha supply and demand situation to counter supply chain instability stemming from the Middle East. In response to the increased supply chain risks due to the war in the Middle East, the government has prepared a supplementary budget totaling 674.4 billion won and is providing support for 50% of the price difference in import costs for basic raw materials such as naphtha, LPG, condensate, and base feedstock.

In addition, the government is working to introduce up to 2.1 million tons of additional naphtha from Saudi Arabia and Oman by the end of the year through a public-private joint special task force.

The industry is also responding by diversifying import sources, expanding domestic supply, and restarting plants ahead of schedule. As a result, the volume of naphtha secured in May is expected to recover to 85-90% of the level prior to the outbreak of war in the Middle East.

Yang stated, "The government is supporting the industry's naphtha supply through measures such as supplementary budgets, so we ask the industry to do its utmost to expand supply and stabilize prices. As the processes involve the handling of large volumes of flammable raw materials such as naphtha, even minor negligence can lead to major accidents. Please make every effort to maintain safety management by conducting thorough equipment inspections and maintaining emergency response systems."

This content was produced with the assistance of AI translation services.