New governmental storage base can house 146 million barrels of oil
Construction of the government’s oil storage base, which began on May 9, 1980 in Ulsan, was completed on May 19, 2010 after 30 years. The Korea National Oil Corporation (KNOC) held a ceremonial event at which Ulsan citizens and distinguished guests, such as President Lee Myung-bak attended.
Kang Young-won, the CEO of KNOC said in his greeting, “KNOC was established to secure the energy defense of Korea following two oil shocks in the 1970s. Thanks to the government’s long-term plans and consistent policy initiatives, it completed the first and second oil storage projects to store 96 million barrels of oil from 1980 to 1999 in seven bases including Kuri and Ulsan.”
He added, “Based on the rapid development of our economy, we are planning to construct a third oil storage with a capacity of 50 million barrels at six bases, including Donghae. Today, we have completed the construction of storage forf 146 million barrels.”
Kang went on, “This will mean that we have the largest oil storage among OECD countries. As the chair country of the G20, we have established a base to lead international cooperation despite the oil crisis, and thus further enhancing our national status.”
He announced KNOC’s future plans, saying, “We aim to grow into the world’s best national oil company by furthering from this oil storage. We want to secure 2 billion barrels of oil deposits and a daily production amount of 300 thousand barrels.”
A spokesperson for KNOC has said that this oil storage facility construction is very meaningful to national policies, the national economy, international society and Northeast Asia.
Firstly, the construction is an expression of consistent policy goals regarding energy independence and security, according to the spokesperson. He said that it would further improve Korea’s economy and national welfare through balanced demand and supply, help the nation serve as a responsible member of the international community, promote the restructuring of the international oil market in Northeast Asia, facilitate the local economy and develop KNOC.
He also emphasized that in line with East Asia’s great development, the world-class storage facility has laid the foundation for the nation to lead the regional oil logistics market.
Furthermore, based on geographic advantages and oil infrastructure, he said that the country will be able to rise as a hub for oil in Northeast Asia (one of the 100 national policies) and become a center for storage.
On the other hand, the government plans to establish oil hubs with a capacity of 35 million barrels in Ulsan and Yeosu. Actually, KNOC and private companies are promoting to construct a commercial tank for this work.
As the government’s plan for oil storage has been realized, it will be converted to commercial facilities in order to generate new national profits, It will develop the work into a high-value added business by storage paradigms into an integrated storage step through ‘market-logistics connection.’ It will cultivate storage into a highly value-added business by developing storage paradigms into a step of integrated storage through ‘market-logistics connection.’