Download This PaperNorth Korea’s Petroleum Industry - Facilities, Demand/Supply, Distribution and UN Sanctions
27 Pages Posted: 8 Apr 2020
Date Written: December 30, 2019
Abstract
North Korea has two crude oil refining facilities of which total capacity is known as 3.5 million ton of oil per year. Seungri chemical plant, which has a 2 million ton of oil capacity, has ceased its production since early 1990 while Bongwha chemical plant of which capacity is 1.5 million ton of oil is partially under operation. Around 0.5 million ton of crude oil is delivered to Bonghwa plant every year through a North Korea-China Friendship Pipeline. The sum of petroleum products from crude oil refining in Bongwha chemical plant and petroleum products imported officially are the total official supply of petroleum products in the country. However, as the market demand rapidly increases, the supply and demand are subsequently adjusted via diverse smuggling routes. Thus, the structure of oil industry of North Korea consists of two different structure, official supply of government and unofficial smuggling of market. United Nations Security Council resolution 2397 which limits refined oil import to 0.5 million barrel per year is considered as a critical barrier for North Korean economy.
Keywords: North Korea, Crude Oil, Petroleum, Refinery, Distribution, Petroleum Product, Oil Storage, Oil Import, Petroleum Product Supply, UN Sanction
Suggested Citation: Suggested Citation