S Korea's SK to resume Iranian South Pars condensate imports in early 2019

South Korea's SK Innovation said Tuesday it is preparing to resume imports of South Pars condensate from Iran for early January delivery after the country secured a US sanctions waiver, but would also continue to diversity its sources of crude and condensate supply.

Register Now "We will continue diversify supply sources because the waiver is for six months, though it can be extended," a company official said. "We are looking at US and Russian light grades, among others," the official added.

SK Innovation, which has been one of South Korea's two biggest buyers of Iranian crude along with Hanwha Total, imported around 1 million/month of South Pars condensate until July, said it has not given notification on how much it can import from Iran. SK Innovation had also imported 1 million-2 million barrels of Forozarn grade from Iran until July.

About 70% of Iranian crude brought into South Korea had long been South Pars condensate, and more than half of South Korea's ultra-light crude imports typically came from Iran's South Pars gas field.

US sanctions on Iranian crude exports went back into effect Monday, although top buyers of Iranian crude were given temporary waivers until May, when they will be expected to cut their purchases significantly.

The US has given temporary waivers to China, India and Turkey -- Iran's top buyers -- as well as Japan, South Korea, Italy, Greece and Taiwan.

However, the US maintained its goal of eventually reducing Iranian crude exports to zero.