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Terminal News

ADNOC & Korea sign agreements to explore oil storage expansion

ADNOC & Korea sign agreements to explore oil storage expansion
ANOC has signed three framework agreements with Korean energy companies to explore upstream and downstream investment opportunities.

The agreements will explore upstream exploration and production opportunities, potential downstream investments and bunkering opportunities for both crude oil and LNG.

The agreements have been signed with the Korea Gas Corporation, the world's second largest buyer of LNG, which has conducted a feasibility study on LNG bunkering at Fujairah Port, the Korean National Oil Company, which has a 30% stake in ADNOC's Al Dhafra Petroleum Company and is seeking to increase oil storage in South Korea by 24 million barrels until 2025 and GS Energy, which has a 10% stake in AL Dhafra Petroleum and 3% stake in ADNOC Onshore.

The agreements were signed by His Excellency Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNCO Group CEO and Kim Young Doo, KOGAS CEO, Yang, Su Yeong, KNOC CEO and Huh, Yongsoo, GS Energy CEO.

H.E. Dr Al Jaber says: 'Our discussion explored domestic and international growth opportunities across a range of areas, including oil and LNG bunkering, meeting the Republic of Korea's growing energy demands and attracting investment to our expanding upstream exploration and development operations and our downstream and gas expansion plans.

'As we successfully deliver our 2030 smart growth strategy, we will continue to work with partners who enable us to unlock and maximise value, contribute technology and help us secure access to the new centers of global demand.'

According to the International Energy Agency, South Korea is home to three of the 10 largest crude oil refineries in the world. As part of its efforts to become a major liquids storage and trading hub in northeastern Asia, KNCO, through joint ventures with other firms, has been building the country's first commercial terminals for crude oil and petroleum products at Yeosu and Ulsan, which will hold a total capacity of 36.6 million barrels.

The first facility, located in Yeosu in the southwestern region of the country, came online in 2013, with 8.2 million barrels of capacity. The other two facilities are being constructed in two phases in Ulsan in the southeastern region of the country and will bring 28.4 million barrels of capacity online by 2026.



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