Busan plans new oil terminal
Construction of a new fuel oil terminal in South Korea's main bunkering port is scheduled to start in early 2010, a major development aimed at boosting sales for the country's marine fuel market.
Since 2006, the Busan Port Authority (BPA) has been planning to build the oil terminal in Busan New Port, which commands about 50% of the country's bunker sales volume.
The operational 60,000-cubic-metre (m³) new terminal would allow an international fuel oil trader and an independent tank operator to supply marine fuel into the South Korean bunker market.
''An operator of the terminal is yet to be decided and BPA will select a private operator in the second half of next year,'' a BPA spokeswoman told Bunkerworld.
By securing imports of fuel oil from international trader or tank operator, the facility would help to offset the ''danger of decreasing residual oil from (local) refineries in South Korea,'' the BPA had said.
South Korean refiners have been releasing less residual fuel into the country's marine fuel market as they upgrade their plants to produce larger volumes of distillates.
Compared to residual fuels, the higher-quality distillate products are more lucrative exports for the country's five refiners – GS Caltex Corporation, Hyundai Oilbank Corporation, Inchon Oil Refinery, SK Corporation and S-Oil Corporation.
Traditionally, marine fuel sold to foreign vessels in South Korea are sourced exclusively from the local refiners.
In 2007, Busan port was estimated to move about 5.5 million metric tonnes (mt) of bunkers, while sales for South Korea were approximately 10 million mt.
A groundbreaking ceremony for the project is planned at the end of 2009, according to BPA.
The project is currently undergoing an environment assessment study before embarking on the design of the terminal, the BPA spokeswoman said.
Since 2006, the Busan Port Authority (BPA) has been planning to build the oil terminal in Busan New Port, which commands about 50% of the country's bunker sales volume.
The operational 60,000-cubic-metre (m³) new terminal would allow an international fuel oil trader and an independent tank operator to supply marine fuel into the South Korean bunker market.
''An operator of the terminal is yet to be decided and BPA will select a private operator in the second half of next year,'' a BPA spokeswoman told Bunkerworld.
By securing imports of fuel oil from international trader or tank operator, the facility would help to offset the ''danger of decreasing residual oil from (local) refineries in South Korea,'' the BPA had said.
South Korean refiners have been releasing less residual fuel into the country's marine fuel market as they upgrade their plants to produce larger volumes of distillates.
Compared to residual fuels, the higher-quality distillate products are more lucrative exports for the country's five refiners – GS Caltex Corporation, Hyundai Oilbank Corporation, Inchon Oil Refinery, SK Corporation and S-Oil Corporation.
Traditionally, marine fuel sold to foreign vessels in South Korea are sourced exclusively from the local refiners.
In 2007, Busan port was estimated to move about 5.5 million metric tonnes (mt) of bunkers, while sales for South Korea were approximately 10 million mt.
A groundbreaking ceremony for the project is planned at the end of 2009, according to BPA.
The project is currently undergoing an environment assessment study before embarking on the design of the terminal, the BPA spokeswoman said.