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E&P worldwide
Stockpiling Projects
Oil Information
Improvement of Petroleum Distribution Structure
The north east asia oil hub
Purpose of project and expected outcomes
Storage tank terminal construction project
Technology Development
 
home > Operations > Improvement of Petroleum Distribution Structure > Purpose of project and expected outcomes
Purpose of project and expected outcomes
 
Oil & gas security and stabilization of oil supply & demand
  • Large oil agents, traders and some other companies will store crude oil and petroleum products in tank terminal facilities in Korea. In an oil emergency, KNOC can secure large quantities of oil in the tank terminal facilities, which will eventually enhance national strength against an oil crisis by stabilizing oil supply and demand. This reduces costs by about 7.5 trillion won compared with government stockpiles based on 30million barrels.
Creation of employment and sales increase
  • The operation of the 30 million barrel tank terminals creates over 9,000 jobs, and according to KDI in 2009, approximately 46billion won sales can be created.
  • This can promote the development of marine transportation and the finance industry through capital circulation from active oil distribution.
Improved competitiveness of the national oil industry
  • Unreasonable marketing conditions and operational flexibility due to insufficient storage facilities can be improved. In addition, profits can be estimated through a strategic alliance between refineries and professional traders.
  • This will provide an opportunity for domestic companies to become globally recognized enterprises with competitiveness.
Expanded infrastructure for the finance/petroleum information network
  • The expansion of national infrastructure of finance/petroleum information network can develop financial markets like derivatives, risk hedging, OTC derivatives, and futures via petroleum trading.
  • Large scale financial contracts for oil trading will pave the way for the introduction of advanced financial techniques and contribute to internationalization of domestic finance companies. Eventually this will help Korea become a financial hub in Northeast Asia.
Open market system and cooperation among Northeast Asian nations
  • After building an oil hub in Korea, many foreign-affiliated firms including tank terminal, international oil trading, and financial firms will move into Korea. This will accelerate the open market system and improve cooperation among Northeast Asia nations.
Department Contacts Updated
Updated : 2016-04-05 Department : Oil Hub Projet Contacts : +82)52-216-5405

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