Korea, India strengthen energy ties as naphtha demand rises

Apr 21, 2026, 08:43 am

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Kim Jung-kwan, Minister of Trade, Industry and Energy of the Republic of Korea, meets with Hardeep Singh Puri, Minister of Petroleum and Natural Gas of India, on April 20, on the occasion of President Lee Jae-myung’s state visit. / Ministry of Trade, Industry and Energy

The South Korean government has requested additional naphtha supplies from India as part of broader efforts to strengthen supply chain cooperation between the two countries following their recent summit.

According to the Ministry of Trade, Industry and Energy, Kim Jung-kwan met with Hardeep Singh Puri to discuss cooperation in energy resources, including naphtha, as well as collaboration in energy transport and the shipbuilding and maritime sectors.

Both sides agreed to jointly respond to growing global uncertainties, including the ongoing conflict in the Middle East, based on a Korea-India joint declaration on energy and resource security.

In particular, the Korean government requested prompt naphtha supplies from India. The country has secured about 1.9 million tons of naphtha this month, falling short of its typical monthly demand of around 2.2 million tons.

Earlier, Yang Gi-wook noted that domestic naphtha production by refiners has decreased by about 10% compared to normal levels, while supply has tightened further due to disruptions in the Strait of Hormuz, increasing reliance on imports.

India is emerging as a key alternative supplier under these conditions. South Korea imported approximately 2.11 million tons of naphtha from India last year, and additional procurement through this round of talks is expected to help stabilize supply.

The ministry also requested cooperation from the Indian government to facilitate ongoing negotiations between Korean companies and major Indian firms, including Indian Oil Corporation. Discussions also covered ensuring stable supply of petrochemical products by Korean firms to meet rising demand.

South Korea and India already maintain strong supply chain ties in the petrochemical sector. Korea is the largest exporter of base oil to India, while both countries rank among the world’s top LNG importers—third and fourth, respectively—highlighting shared concerns over energy security.

The two countries also agreed to expand cooperation in shipbuilding by enhancing shipyard modernization, workforce training, and technological collaboration. They plan to move quickly into working-level discussions to turn summit outcomes into concrete business projects.

A ministry official said, “We will ensure that the outcomes of the summit lead to tangible and practical business results through swift follow-up consultations between working-level officials.”

#Korea #India #naphtha #energy security #supply chain