The price of Korean aviation oil is soaring. Asian countries, including Japan, are emerging as big customers looking for Korean aviation oil. As the strategic value of aviation oil grows, it can be a bargaining chip for the Korean government.
For more information, I'm reporter Lim Ji-soo.
[Reporter]
As the gas panel below the wing of the plane opens, the fuel inlet appears.
High-pressure aircraft oil through the combined nozzle quickly fills the fuel tank.
Aviation oil is directly related to safety, making quality control difficult.
It should flow without freezing over low pressure at minus 50 degrees Celsius, and most shocks should not catch fire, so it goes through strict quality control.
In addition to this delicate refining technology, our oil refining industry is considered one of the world's leading refining hubs for its advanced technology that extracts aviation oil from low-quality Middle East heavy oil.
[Yoo Seung-hoon/Professor of Future Energy Convergence at Seoul National University of Science and Technology: It has global competitiveness to extract aviation oil from refined oil residue and produce it at a low price.]
Amid the supply chain crisis from the Middle East, the global aviation oil crisis is causing our aviation oil prices to soar.
Exports exceeded $1.243 billion in March, up 2.6 times from last year.
Even if you sold the same ton of aviation oil in a year, the unit price became 82% more expensive.
In particular, as Asian countries rushed to buy our aviation oil with high-priced short-term spot supplies, Japan's exports increased nearly nine times and Singapore increased more than 1.2 times compared to last year.
Due to the close distance, demand has been dispersed to Asian countries with favorable logistics costs and turnover rates, with U.S. exports down 15% from last year.
However, in the western United States, where large airports such as LA are concentrated, 85% of imports are still considered Korean.
This is because the pipeline between the western United States and the southern Gulf is cut off by mountain ranges, making Korean products faster and cheaper.
Our aviation oil competitiveness may be a bargaining chip for the Korean government, which seeks to diversify its supply chain with U.S. crude oil.
[Yoo Seung-hoon/Professor of Future Energy Convergence at Seoul National University of Science and Technology: We will supply you with aviation oil, so you should supply oil in a stable manner. Actually, Australia is trying to reduce oil exports (due to high oil prices), but not Korea.]
[Video editing by KIM DONG JUN] [Video design by KIM KUANHU, HWANG SUBI, Lee Yewon]
Reporter Lim Ji-soo (yim.jisoo@jtbc.co.kr )
In the end, our hope lies in our differentiated manufacturing capabilities.
From semiconductors and power to shipbuilding, defense, aviation fuel, and even cosmetics.
It’s almost remarkable that our country has all these industries—our manufacturing strength is truly shining.
I believe it’s time to enjoy what could be a golden era over the next few years.