S.Korea SK Corp boosts exports to U.S.

By Jiwon Chung and Yaw Yan Chong

SINGAPORE (Reuters) - South Korea's top refiner SK Corp. (003600.KS: Quote, Profile, Research, Stock Buzz) is poised to become a major oil trader as it boosts diesel and jet fuel exports to the Americas and will turn into a fuel oil importer next year.

The company is already doubling its average jet fuel exports to the United States this year to about 50,000 barrels per day (bpd), and expects to raise its ultra-low sulphur diesel shipments to the U.S. from July, said Ahn Hee June, the firm's head of supply and trading.

"The U.S. has become our biggest customer for exports this year," Ahn said in an interview at the Reuters Energy Summit.

"We want to increase our exports (to the U.S.) as much as possible."

Oil companies are reluctant to spend money to boost North American fuel production capacity, fearful that demand could slump under the weight of record gasoline prices, executives and analysts told the Reuters Energy Summit this week.

This means they will rely increasingly on fuel imports.

"We are more interested in the eastern side to our refinery --the U.S. West Coast or South America," he said.

"We can move our barrels to Europe only when the arbitrage is open. We don't take it as a main market," Ahn added, though he did not rule out exports to Europe.  Continued...