KNOC expects to complete underground oil storage by the middle of 2021

KNOC said this week it expects to build an underground strategic crude oil storage facility in the southeastern city of Ulsan by June 2021. The completion of the underground crude oil storage will bring the company's total oil storage capacity to 146 million barrels. According to KNOC, a state-owned company, the company currently has 136 million barrels of crude and refined oil storage capacity, distributed in nine facilities. "This project is part of KNOC's plan to replace its above ground oil depots and build a safe and environmentally friendly underground oil depot," Lee Yeon kyu, senior manager of the construction office in Ulsan, KNOC, South Korea, told reporters on a field trip on Monday A spokesman for KNOC said that due to stratum problems, KNOC had to modify the layout of the site, so it took longer to dig storage caves, so the completion date in mid-2021 was delayed by six months. According to KNOC's data, once the new facilities are completed, KNOC's underground oil reserves in Weishan will reach 16.8 million barrels. KNOC has closed 18 ground tanks in Ulsan, although South Korean refineries still have their own ground tanks there. Lee said the facility will mainly store Middle East crude oil, such as Arab extralight and Oman crude, the first choice of South Korean refiners. South Korea is the fifth largest crude oil importer in the world, and more than 70% of its oil comes from the Middle East. KNOC can also use underground facilities to store oil for joint storage. The Joint Reserve is completed in cooperation with global oil producers and oil giants. South Korea has the priority to purchase crude oil in case of emergency. According to KNOC, the company has reached a joint storage agreement with seven companies, including Norwegian equinor, to store 17.1 million barrels of crude oil. According to KNOC, the new underground storage will be able to store 10.3 million barrels of crude oil, equivalent to 10 days' consumption in South Korea.