Eagle Ford Oil Heads to South Korea
South Korea purchases Eagle Ford oil for the first time in over 40 years.
Related: More Eagle Ford LNG Headed Abroad
GS Caltex, South Korea’s second-biggest refiner, has announced the purchase of another 1 million barrels of U.S. crude from the Eagle Ford, according to Platt’s global division. The company has already unloaded another 1 million barrels in Yeosu, South Jeolla Province, during November.
Eagle Ford crude is a hot export commodity because it contains less sulfur content than ‘heavier’ crudes. Caltex will use the light sweet crude for blending with their heavier oil.
“GS Caltex is the first domestic refiner importing crude from the U.S. mainland since the nation lifted its long-standing export ban,” a company spokesman said. “It has become more price-competitive to purchase crude oil from the United States because of low West Texas Intermediate (WTI) prices and falling shipping charges. We will continue to explore opportunities to import more from the United States and further diversify our import countries.”
In April, the U.S. senate passed the Energy Policy and Modernization Act designed to increase U.S. exports of liquefied natural gas (LNG). This is South Korea’s first purchase of US crude since Washington lifted a 40-year restriction on exports late last year.
Eagle Ford midstream companies are looking to prosper as natural gas exports overtake imports over the next 16 months. The state is currently building a massive LNG export terminal along the Gulf Coast.
In June, the U.S. Department of Energy authorized Flint Hills Resources to export liquefied natural gas (LNG) to countries that do not hold a free trade agreement (non-FTA) with the U.S. The order allows Flint to export LNG 3.62 billion cubic feet of natural gas per year over the next 20 years.