New pipeline connects S-Oil refinery to Onsan Tank Terminal

A new pipeline connecting South Korean S-Oil’s 669,000 barrel per day refinery in Ulsan, South Korea, to the Onsan Tank Terminal will begin operations at the end of July, making it more efficient to transport refined oil products to the terminal.
S-Oil currently transports bunker fuel from the refinery to the terminal via ships.
Construction of the pipeline from the refinery to the terminal was previously expected to be completed in June or in the first-half of July, but there have been delays, Platts reported.
Onsan Tank Terminal, a consortium of Japanese and South Korean companies, owns and operates storage tanks with a total capacity of 100,000 kiloliters (kl) at the Onsan site in the southeast of the country. The building of these tanks was completed in November 2012, with half the capacity for clean products such as gasoline and gasoil and the other half for dirty products such as fuel oil.
S-Oil has been leasing tanks with a total capacity of 20,000 kl at the Onsan Tank Terminal, to store bunker fuel.
The main shareholders in Onsan Tank Terminal are Japanese oil trader Nakagawa Bussan (36.64%), South Korean city gas supplier Yesco (24%) and South Korean LPG supplier E1 (24%).
(July 1, 2013)