Korea National Oil Corporation Holds Completion Ceremony for 'Korea Energy Terminal' at Ulsan North Port, Northeast Asia Energy Hub

Northeast Asia Energy Hub Project, Ulsan Completion Following Yeosu... 16-Year Journey Comes to Fruition

Korea National Oil Corporation held a completion ceremony for Korea Energy Terminal (KET) at Ulsan North Port on the 14th.

President Kim Dong-seop of Korea National Oil Corporation is delivering a commemorative speech at the completion ceremony of KET (Korea Energy Terminal). Photo by Korea National Oil Corporation

The ceremony was attended by government, local government, and industry officials including Choi Nam-ho, 2nd Vice Minister of the Ministry of Trade, Industry and Energy, Kim Du-gyeom, Mayor of Ulsan, and Yoon Byung-seok, CEO of SK Gas.

KET is the only public-private joint complex energy terminal in Korea, capable of storing a total of 5.75 million barrels (1.7 million barrels of oil and 4.05 million barrels of LNG). This completion ceremony commemorates the completion of 12 oil tanks with a total capacity of 1.7 million barrels and 2 LNG tanks with a total capacity of 2.7 million barrels.

Among the 4.05 million barrels of LNG, one tank with a capacity of 1.35 million barrels is scheduled for completion in 2026.

The ‘Northeast Asia Oil Hub Project,’ which began as a national agenda in 2008, was promoted in Yeosu and Ulsan based on Korea’s excellent geopolitical location and port conditions. Following the completion of the Yeosu oil storage facility in 2013 and the first arrival of petroleum products at Ulsan North Port in April this year, this completion ceremony marks the fruition of a 16-year journey.

In particular, the Korea National Oil Corporation led SK Gas’s participation in 2019 and signed a joint investment contract, transforming the existing ‘Northeast Asia Oil Hub Project’ into the ‘Northeast Asia Energy Hub Project’ encompassing LNG.

The oil terminal of KET, which began commercial operation in March this year, counts world-renowned companies such as Total and Aramco among its customers. The LNG terminal has also attracted leading domestic companies including Ulsan GPS, SK Energy, Korea Zinc, and SK Multi-Utility, providing a stable supply route for power generation raw materials and fuels.

The Korea National Oil Corporation has actively supported institutional improvements by related agencies such as the Ministry of Trade, Industry and Energy and the Korea Customs Service. As a result, from this year, blending regulations at domestic oil tanks have been relaxed, enabling KET to provide a stable foundation for customer companies to actively utilize expanded business opportunities at Ulsan North Port.

In response to recent global energy paradigm shifts, KET has expanded its business to include natural gas, and plans to promote natural gas, CCS, hydrogen, and ammonia projects on the remaining sites of Ulsan North Port and Ulsan South Port. In particular, by linking finance and trading, it aims to establish a carbon-neutral energy hub competing with Rotterdam in the Netherlands and Singapore.

Kim Dong-seop, President of Korea National Oil Corporation, said in his commemorative speech at the completion ceremony, “The 16-year journey since being selected as a national agenda in 2008 has borne fruit with the completion of KET,” and added, “KET will contribute to enhancing energy security through expanding regional cargo volume and strengthening national industrial competitiveness by providing world-class terminal services to its customers.”