KNOC to build $1.4 billion oil hub in Ulsan
BY MIN-JEONG LEE
SEOUL -- KNOC plans to begin work on $1.4 billion oil storage and trading hub in Ulsan starting next year, its chief executive said. The hub will be a "very important project" for the company and Ulsan, a coastal city in southeastern South Korea well-located to receive oil exports from countries such as Canada and the United States, Suh Moon-kyu, KNOC's newly appointed president and chief executive, told The Wall Street Journal in an interview.
Foreign oil majors and trading companies will surely want to use the hub, Mr. Suh said. BP, Vopak, Gazprom and Bank of China have expressed interest in investing in the project, he said.
The hub, consisting of two terminals, will have a total storage capacity of 28.4 million barrels, including a 9.9 mb terminal for petroleum products and an 18.5 mbo terminal for crude, the company said. It aims to have the tank for petroleum products completed by 2016.
KNOC is set to begin commercial operations at an 8.2 mb oil terminal in Yeosu in March, Mr. Suh said. KNOC is the biggest partner in the smaller terminal, with a 29% stake. China Aviation Oil has a 26% stake. SK Energy and GS Caltex, South Korea's two largest refiners, each hold an 11% stake.
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