ULSAN < invest Korea

(ULSAN=NEWSIS) Ulsan will promote the Northeast Asia Oil Hub project by applying for the preliminary feasibility evaluation of the project in July, 2015.

According to a report on the feasibility study and basic plan of the Northeast Asia Oil Hub Ulsan South Port, the city needs to review the basic plan and design an outline, analyze the economic and financial feasibility of the project and establish project strategies. The city will apply for the preliminary feasibility evaluation to the Ministry of Strategy and Finance in July, 2015.

Ulsan limited the storage oil to crude oil for the south port project during the preliminary feasibility study in 2010. Considering the changes in the global oil market, the city will allow other kinds of oil including product oil and LPG.

According to an outlook for the demand of tank terminal by BCG, a global consulting company, more storage facilities will be required: 6.5 million barrels in 2020, 19.3 million in 2024 and 62.8 million barrels in 2040.

Therefore, Ulsan needs to build a tank terminal that can hold 18.5 million barrels by 2020 to develop the city as the energy hub in the Pacific Rim.

With a total of KRW 1.9377 trillion, the Northeast Asia Oil Hub Ulsan Project is to build commercial storage facilities (28.4 million barrels) on 906,000 ㎡ of land in Ulsan’s south and north ports by 2020. The aim is to develop Ulsan as one of the four oil hubs in the world following the United States, Europe and Singapore.

The north port project is about 14.4 percent complete and the goal is to establish a master plan to build an oil finance service system by next year.

jhc@newsis.com