South Korea begins construction of oil storage terminal in Yeosu

The 10-year old plan of state-run Korea National Oil Corporation (KNOC) to develop Yeosu, in South Jeolla Province, into an oil hub of Northeast Asia has finally begun. KNOC wants to create an oil hub similar to Europe’s ARA (Amsterdam, Rotterdam and Antwerp) and Singapore’s Jurong Island. KNOC has begun construction of an oil storage terminal in Yeosu, with a capacity to store 8.2 million barrels of crude oil and petroleum products. Its subsidiary, Oil Hub Korea Yeosu, has raised KRW360 billion (US$316 million) through corporate bond offerings issued in late March. The entire amount was hedged against currency risks, which, the company said, completes the groundwork for stable management. (April 20, 2012)