• The oil hub is the center of oil logistics & trading, providing storage and value-added services by constructing commercial storage tank terminals in major world sea routes.
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• Commercial terminals are unlike the existing strategic oil stockpiling facility. They are for users who want to use the tanks. The terminals provide diverse services such as blending, heating, and making and breaking bulk.
• KNOC will contribute to push Korea as an Oil Hub in North East Asia and boost the national economy by enhancing its strength against oil crisis and by promoting oil industry development. For this project, KNOC will make the most of national advantages such as geographical and industrial benefits and refining capacity along with improvement in the current insufficient tank storage capacity, as well as inadequate financing and professional oil trading systems.
• KNOC has prepared for the oil hub project over 13 years since 2000. It carried out an action plan in 2005, a feasibility study in 2008 and basic engineering in 2013.
  In addition, KNOC is taking actions below to make the project successful.
  ① Construct tank terminals with economies of scale for competitiveness
  ② Improve institutions and systems to provide diverse value-added services
  ③ Research and study the establishment of a petroleum commodity exchange

Construct tank terminals

• KNOC plans to secure commercial storage tank terminals with crude oil and petroleum products in the petrochemical industry cluster in Yeosu and Ulsan. The Yeosu terminal has been in operation with a capacity of 8.2 million barrels while the Ulsan North Port terminal is under consideration to construct with a capacity of 5.75 million barrels

Improve institutions and system to provide diverse value-added services

• Vitalizing oil trade and logistics is key to the success of the oil hub. A government-wide task force was organized by the Ministry of Trade, Industry & Energy including KNOC and the Korea Customs Service to improve institutions and systems and to stimulate oil trade and logistics for diverse value-added services.

Research and study to set up a petroleum commodity exchange

• To promote fair competition between suppliers and stabilize oil prices, KNOC researched publicizing international oil product prices by Korean price standards. It also studied establishment of an international petroleum product exchange in Korea and activation methods.

Introduce an amendment to the Petroleum and Petroleum-alternatives Fuels Law

• The goal of the oil hub is to stabilize oil supply and demand as well as stimulate the oil industry. To meet the goal and develop it to the level of the world’s three major oil hubs, government and institutional support is essential. KNOC proposed amendment of the clause of the Petroleum and Petroleum-alternative Fuels Law to prevent legal problems and smooth procedures.