Ulsan 'Korea Energy Terminal' Commences Commercial Operation... "Accelerating Leap to Global Energy Hub"

Lease Agreement Completed for Tank Terminal with a Capacity of 4.4 Million Barrels

The Ulsan 'Korea Energy Terminal (KET)', a core project of the Northeast Asia Energy Hub policy, has commenced commercial operations.

On the 14th, the Ministry of Trade, Industry and Energy announced that Vice Minister Choi Nam-ho attended the completion ceremony of the Korea Energy Terminal located in Nam-gu, Ulsan.

Ulsan Korea Energy Terminal. (Reference photo)

This terminal is the second domestic energy hub facility completed following the completion of the Yeosu oil storage facility (Oil Hub Korea Yeosu) in 2013, as a key project of the Northeast Asia Energy Hub policy. It was promoted based on Korea’s excellent geopolitical location and port conditions.

KET is the first domestic integrated energy terminal where oil and gas storage facilities coexist. In response to recent changes in the global energy paradigm, it was developed as a complex terminal expanding the business from the existing oil-centered model to include natural gas. Based on changing demand and its transformation into an innovative model, the Ministry of Trade, Industry and Energy evaluates that it can be further expanded into a storage terminal for various clean energy sources such as hydrogen, ammonia, and carbon dioxide capture and storage (CCS) facilities in the future.

In particular, this terminal is also regarded as a model case of public-private cooperation successfully achieved through collaboration between the public and private sectors. The government has taken the lead in institutional improvements to activate the terminal, such as establishing international oil trading businesses and allowing blending of domestically produced petroleum products within the comprehensive bonded zone. Korea National Oil Corporation contributed to the safe design and construction of the terminal based on its experience in building large-scale national infrastructure projects for oil stockpiling bases. The private company SK Gas proposed the establishment of Ulsan’s first liquefied natural gas (LNG) terminal to meet the local private LNG demand, significantly expanding the terminal’s commercial viability.

Accordingly, domestic and international companies currently show very high interest in the Korea Energy Terminal, and all oil and gas storage facilities (totaling 4.4 million barrels) have already been leased. The 1.7 million barrel oil storage facility is expected to be used for oil product trading by overseas traders, while the 2.7 million barrel (200,000 tons) gas storage facility will supply new power generation and industrial fuel to domestic companies in the Ulsan region.

Vice Minister Choi said, "The Korea Energy Terminal is a model case where the public sector’s public interest and the private sector’s creativity have created a synergy effect based on policy efforts," adding, "The government will continue to innovate regulations and prepare support measures to revitalize domestic energy terminals."