Korean refiners fly high in Japan with record gasoline exports

(GS Caltex)

South Korean refiners are expanding their presence in Japan with their own petroleum products including gasoline and sustainable aviation fuel (SAF).

According to data from the Korea Customs Service and Korea National Oil Corp. on Thursday, Korea’s gasoline exports to Japan reached $1.45 billion from January to August, marking an all-time high for the cited period.

Korea‘s gasoline surplus with Japan has also surged to hit $1.28 billion in the first eight months of 2024—the highest in 12 years.

Unlike their Japanese counterparts, since the 1990s, Korean refiners have actively invested in facility upgrades to transform heavy oil into more valuable crude oil products such as gasoline and diesel.

GS Caltex Corp., for example, invested 11 trillion won ($8.2 billion) in heavy oil upgrading facilities between 2000 and 2016, now boasting the largest capacity in Korea at 275,000 barrels per day.

S-Oil Corp. also invested 7.1 trillion won in its facilities until the 2010s.

HD Hyundai Oilbank Co. leads in production of high-value-added products, with 41.7 percent of its output in the segment—the highest among domestic refiners.