On November 5, the Korea Energy Terminal (KET) at Ulsan North Port showcased its impressive infrastructure, featuring massive cylindrical storage tanks. The facility includes three liquefied natural gas (LNG) storage tanks and twelve oil product storage tanks, making it the first integrated energy terminal in South Korea to handle both LNG and oil products.
KET, a joint investment by Korea National Oil Corporation and SK Gas, is the first LNG terminal in Ulsan, with ownership stakes of 52.4% and 47.6%, respectively. Since breaking ground in 2020, KET has gradually expanded its facilities to support the establishment of Ulsan Port as a Northeast Asia energy hub.
Initially launched as part of the government's Northeast Asia Oil Hub project, KET shifted its strategy to include LNG operations, recognizing the need for diversification to ensure business viability.
Currently, KET's storage capacity includes three LNG tanks with a total volume of 645,000 cubic meters and twelve oil product tanks with a capacity of 270,000 cubic meters, totaling 915,000 cubic meters. The LNG terminal can vaporize and supply up to 540 tons of natural gas per hour.
The strategic location of Ulsan North Port enhances KET's competitiveness, as it is adjacent to major industrial complexes and energy demand centers, including refineries and power plants. The port's structure, surrounded by breakwaters, minimizes wave and weather impacts, facilitating stable unloading operations.
During a site briefing for the Korea Maritime Journalists Association, a KET representative stated, "Ulsan North Port is a region rich in energy demand due to the concentration of refineries, power companies, and chemical firms. Our ability to handle both LNG and oil products simultaneously sets us apart from other terminals."
Another advantage for KET is its stable revenue structure. All three LNG storage tanks have long-term contracts with SK Gas, which supplies LNG to power and refining companies based on these agreements.
A KET representative noted, "More than 80% of our total revenue comes from the LNG business. The long-term contracts for the LNG storage tanks, which span 20 years, ensure a stable revenue stream."
Operational performance has also been strong. Since commencing commercial operations in November 2024, the LNG terminal has handled 55 vessels and has a cumulative natural gas output of 3.19 million tons. Currently, it supplies LNG to five customers and has maintained stable operations without interruptions since starting commercial activities.
The oil terminal has processed 342 vessels, recording a cumulative throughput of 4.65 million cubic meters. The twelve oil product storage tanks have rental agreements with global energy companies.
KET is expanding beyond its existing storage and unloading operations into new ventures, including LNG bunkering, which involves supplying LNG as fuel to ships. This sector is gaining attention as a new growth driver due to stricter international environmental regulations and the increasing number of LNG-powered vessels.
Looking ahead, KET plans to leverage its strengths as a combined terminal handling both LNG and oil products to enhance its energy logistics capabilities. This includes initiatives such as gas trial operations for LNG and LPG carriers and the establishment of new oil pipelines connecting to nearby refineries, utilizing existing facilities.
A KET representative stated, "We are focused on ensuring a stable energy supply based on our strengths as a terminal that can handle both LNG and oil products. We will continue to secure new demand sources and diversify our operations to contribute to Ulsan Port's emergence as a Northeast Asia energy logistics hub."
* This article has been translated by AI.
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