South Korea Petrochemical Firm to Replace Iranian Oil

South Korea’s Hanwha Total Petrochemical Company has increased the imports of condensate from the United States and Australia and is seeking more European cargoes to replace Iranian supplies, two industry sources said.

The move is in line with other South Korean refiners that have replaced Iranian oil with similar imports, Reuters reported.

The petrochemical producer bought 1 million barrels of US Eagle Ford condensate for November arrival and it has also stepped up imports from Australia, recently buying Wheatstone condensate for October delivery, the sources said.

The purchases were part of Hanwha Total’s efforts to replace Iranian condensate ahead of renewed sanctions on Iran in November, one of the sources said. The sources declined to be named as they were not authorized to speak to media.

South Korean refiners and petrochemical producers suspended shipments of Iranian crude and condensate in July, halting all shipments for the first time in six years amid US pressure to cut all imports from Iran from November.

South Korea in turn increased its condensate imports from Australia and will lift two 650,000-barrel cargoes of North West Shelf condensate in August, the highest volume since March 2015, trade flows data on Thomson Reuters Eikon showed.