SK Gas, KNOC launch Korean LNG and oil terminal

Korea Energy Terminal (KET) is a joint venture of KNOC (53 percent) and SK Gas (47 percent) formed to build a commercial energy storage facility at North Port in Ulsan as part of the government project called Northeast Asia oil hub project.

KNOC said in a statement that the two firms held a ceremony on November 14 to mark the completion of the public-private project.

The ceremony marked the completion of 12 oil tanks with a total capacity of 1.7 million barrels and two LNG tanks with a total capacity of 2.7 million barrels.

KNOC said the third LNG tank with a capacity of 1.35 million barrels is expected to be completed in 2026.

Back in 2020, Daewoo E&C won a contract for the first phase of this project in the port of Ulsan which included the construction of a 215,000-cbm LNG tank and additional regas facilities with about 1 mtpa capacity.

It also won a contract for the second phase with the same scope the same year.

Last year, a consortium led by Daewoo E&C also won the contract for the third phase as well and the full project will have three LNG tanks with a total capacity of 645,000 cbm.

The terminal also includes a berth for LNG bunkering vessels.

Last year, SK Gas, the unit of South Korean conglomerate SK Group, joined forces with compatriot shipping firm H-Line and the Ulsan Port Authority to develop an LNG bunkering project.

One of the LNG customers includes SK Gas’s LNG/LPG combined cycle power plant in Ulsan (Ulsan GPS).

In the future, KET plans to expand with additional LNG and ammonia storage facilities on the remaining site.