US assistant secretary of state for energy resources Francis
Fannon is on a tour in Asia this week and is visiting Seoul and Tokyo between
February 19 and 26.
Fannon is meeting with government officials and private
sector representatives “to discuss energy security and regional cooperation on
energy issues,” the US Department of State said, noting that the official will
also highlight the importance of energy diversification in the Indo-Pacific
Region.
Both South Korea and Japan were among the eight Iranian
customers who received waivers from the US to continue importing Iranian oil at
reduced volumes until early May 2019.
South Korea’s deputy minister for economic affairs of the
ministry of foreign affairs, Yun Kang-hyeon, met with Fannon on Wednesday and
discussed ways to increase cooperation in the energy sector.
Yun and Fannon “talked about the Iranian crude issue and
South Korea’s efforts toward diversification of sources of crude imports,”
Platts’ source in Seoul said, without elaborating on details.
According to Takayuki Nogami, chief economist at Japan Oil,
Gas and Metals National, Fannon’s visit seems to be aimed at urging supply
diversification and boosting energy security, including by Japan and South
Korea increasing their US crude oil imports, which may lead to reduced Iranian
oil imports in the region.
Iran’s key Asian customers—Japan, South Korea, India, and
China—are all buying Iranian crude once again, but at much lower rates than
they did before November when US sanctions kicked in, S&P Global Platts estimates
showed at the end of January.
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