India-South Korea increased cooperation on energy security, emphasis on strengthening supply chain

New Delhi, 21 April. An important joint statement has been issued between India and South Korea regarding energy resource security. In this statement issued on Monday, both the countries have emphasized on further strengthening their special strategic partnership. Both countries reiterated their shared vision for an open, inclusive and prosperous Indo-Pacific region. The joint statement said that economic and energy cooperation between India and South Korea is the main basis of their strategic partnership.

This cooperation is based on open markets, transparency and rules-based trading system, which is essential for the economic security and development of both the countries. Also, the need to understand the impact of current global conditions on industries and markets was also stressed. Both countries committed to further their cooperation under the Comprehensive Economic Partnership Agreement. There is a plan to further strengthen energy trade and investment through this agreement. Currently, India supplies naphtha and other petroleum products to South Korea, while South Korea provides petroleum products and lubricant base oils to India.

The statement laid special emphasis on strengthening the energy supply chain. The two countries talked about enhancing regional cooperation, accelerating the energy transition and supporting open trade for energy resources. In addition, possibilities for mutual cooperation to enhance market stability and transparency as major LNG consuming countries were also discussed. India and South Korea also recognized that a strong maritime infrastructure and shipbuilding sector is extremely important for energy security.

In this direction, both the countries agreed to enhance cooperation in the shipbuilding sector, which includes setting up shipyards in India, modernization of existing shipyards, technical cooperation and human resource development. In the joint statement, both countries reiterated their resolve to maintain secure and reliable supplies of energy resources to each other. At the same time, regional partner countries were also appealed to cooperate in keeping the global energy supply chain open and stable, so as to ensure the security and prosperity of all countries.