As the largest bulk liquid storage facility in the Ulsan industrial complex, Jeongil Stolthaven Ulsan tank terminal is embarking on more growth to handle greater demand for petrol and petrol product storage
Jeongil Stolthaven Ulsan is a crucial facility in Stolthaven’s network as it enables domestic and regional distribution throughout the North Asia Pacific region.
The terminal, which is the largest bulk liquid storage facility in the Ulsan/Onsan industrial complex, is Stolthaven’s distribution hub for
the region, therefore further development of the facility is vital to ensure it maximises its significant business potential.
Since 2012, the facility has undergone several rounds of capacity expansion to cater for greater product demand as well as more customer
requests. In 2005, Ulsan Port Authority decided to construct a new port in front of the Jeongil site as part of strategic plans to make
Ulsan North East Asia’s oil hub.
The timing could not have been better for the terminal as it perfectly matched its growth plans. Anticipating that demand for petroleum product storage would increase in the near future, in 2012 company executives increased capacity by 550,000 m3 spread across 56 tanks.
This extra capacity was quickly leased out and in 2015 seven speciality tanks, totalling 25,000 m3 of capacity, were built for an international company on a long-term contract.
In an interview with Tank Storage Magazine commercial manager Sang-Yol Ha says that future development of the facility is on the cards, with a further ten tanks due to become operational in September as well as plans for extra capacity in 2018.
He says: ‘Many of our customers are continually asking for storage tanks for the blending of petrol and petrol components, so on the back of this demand we are building ten internal floating roof tanks.
‘We have additional land for expansion and we plan to start building an extra 200,000 m3 of capacity next year for a neighbouring refining company that has requested additional storage for petrol, naphtha and fuel oil.
‘Additionally, a Japanese company wants to have several large storage tanks in Ulsan, so we are building additional CPP and chemical tanks.
‘For our domestic customers, our facility is used for importing raw materials as well as for exporting finished goods. Our foreign customers use our tanks for selling products to Korean customers or to re-export to other destinations.
‘Traders store their cargo with us for trading, breaking bulk or making bulk, so our range of customers is diverse.’
The terminal benefits from strong business at Ulsan port, which is on the cusp of the first phase of its North East Asia oil hub project that
will help it to cater to rising oil demand in the region. It also ideally placed among various chemical companies and two refineries in
Ha says: ‘As we are in the centre of North East Asia, the terminal is located very near to Japan and China, so many customers are using
Ulsan as a hub port. Demand for ethanol and petrol component tanks is increasing – as evidenced by the company’s plans to further increase capacity for these products. Ha explains that around 60% of its tanks are used for chemical storage while the rest are used for petroleum and that he sees demand for petroleum products increasing further in the future.
While there are several tank terminals in Ulsan, Jeongil is the largest and has seven jetties, significantly reducing any possible demurrage charges for its customers.
‘There are challenges with operating a facility in South Korea, mainly around government restrictions such as restrictions on blending,
taxes for pipeline transfer between refineries and terminals and cabotage,’ explains Ha.
‘We aim to have the best customer service, the safest facility and to be the biggest tank terminal in the world.’