South Korean feedstock diversification a no-go.

摘要

According to refiners in the country, efforts by the government to diversify feedstock sources away from the Middle East are not likely to succeed. "The government's new plans for incentives for non-Middle East crudes still fall short of our expectation," said an official with the Korea Petroleum Association, explaining while the government has said it will reimburse companies for the higher cost of shipping crude from South America or the North Sea, there are additional risks with regard to crude quality, as Korean plants are optimized for Middle East oil. Since 2004, the government has imposed lower tariffs on non-Middle East oil, though until now this was not said to be sufficient to cover higher shipping costs.