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LG Chem Brings In 27,000 Tons of Russian Naphtha Under U.S. Waiver

The purchase signals an alternate route contingent on a short U.S. sanctions waiver.

Overview

  • LG Chem received 27,000 tons of Russian naphtha on Monday, with the cargo bound for the Daesan petrochemical complex in South Chungcheong Province.
  • A U.S. waiver for Russian petroleum loaded between March 12 and April 11 enabled the deal, which leaves any follow‑on imports uncertain once it expires.
  • The shipment is a token volume next to South Korea’s roughly 4 million tons of monthly naphtha use, so it functions as a stopgap rather than a solution.
  • South Korea imports about 45% of its naphtha, 77% of that from the Middle East, where shipping strains have tightened supply and lifted Asia-bound prices by about 60%.
  • Naphtha is the base for ethylene used in plastics and chipmaking chemicals, so sustained shortages and higher costs could slow factory output unless more routes open.