Ulsan Petroleum Storage Facility Begins Operation... LNG Facility Scheduled for Completion in June

First Arrival of 50,000-ton Class Petroleum Product Transport Ship

As part of the Northeast Asia Energy Hub policy, the oil storage facility being constructed at Bukhang, Nam-gu, Ulsan, has begun operations. The gas storage facility is scheduled to be completed in June this year.

The Ministry of Trade, Industry and Energy announced that Lee Ho-hyun, Director General of the Energy Policy Office, visited Korea Energy Terminal (KET) on the 18th to observe the first delivery status of petroleum products and inspect the construction site.

Korea Energy Terminal is a combined oil and gas terminal. It is a joint venture between Korea National Oil Corporation and SK Gas, which broke ground in July 2020, and the oil storage facility was completed last December. The liquefied natural gas (LNG) facility is scheduled for completion in June this year.

Last month, the terminal attracted an overseas trader company (Company T) to the oil storage facility. On this day, Company T’s oil transport vessel arrived, and the first petroleum product (naphtha) was received, marking the start of commercial operations.

The government continues efforts to revitalize domestic energy terminals. In 2017, the Petroleum Business Act was amended to establish the "International Petroleum Trading Business," allowing petroleum traders to operate freely in Korea. In January this year, the system was improved in cooperation with the Korea Customs Service and the National Tax Service to enable immediate refunds of customs duties, value-added tax, and import charges when domestic refiners export petroleum products to bonded areas, allowing international traders to use products produced by domestic refiners for blending. As a result, trader companies from various countries have shown interest in the Ulsan regional energy hub, and the Ministry of Trade, Industry and Energy expects this to have a positive impact on attracting additional investors.

At the event, Director General Lee said, "The Ulsan Korea Energy Terminal is a model case of public-private cooperation successfully established by the public enterprise Korea National Oil Corporation and the private company SK Gas," adding, "Since the completion of the gas storage facility is still pending, I hope the construction proceeds with strict adherence to safety regulations."