Global bunker supplier Chemoil and South Korea's largest shipping firm Hanjin Shipping may jointly build a bunkering terminal in Korea's Busan New Port, a Busan port official has revealed.
"We are planning to have a new bunkering terminal in Busan port," Roh Ki-Tae, president of Busan Port Authority (BPA) told Bunkerworld Tuesday.
BPA has since 2007 announced plans to build a 60,000-cubic metre (m³) oil terminal in Busan New Port.
A feasibility study for the terminal has been completed, with Chemoil and Hanjin Shipping expected to propose a plan to BPA by the end of March, according to Park Ho-Chul, director of marketing team for BPA.
"Many shipping firms have asked the government to provide oil stations at Busan port. The prospective candidates – Chemoil and Hanjin Shipping – will invest in building the terminal," Park said.
"There may be more candidates interested in the project as it is still in a very early stage," he said.
The port authority hopes to start construction of the terminal in late 2010, Kang Sun-Min, assistant manager for BPA, told Bunkerworld earlier.
Singapore-listed Chemoil, majority owned by fuel oil trading house Glencore, declined to comment to Bunkerworld queries on Tuesday.
BPA has planned for the new terminal to be operated by an international fuel oil trader and/or tank operator in order to secure supply of marine fuel into the Korean bunker market.
By securing imports of fuel oil from a commercial player, the facility would help offset the threat of declining bunker fuel supply from local oil refineries, according to BPA.
South Korean refiners have been supplying less bunker fuel into the country's marine fuel market as they upgrade their plants to produce larger volumes of distillates, which reap higher export margins.
Traditionally, marine fuel sold to foreign vessels in South Korea are sourced exclusively from local refiners.
Busan, Korea's biggest bunkering port, accounts for about 50% of the country's total bunker sales.
The port is estimated to have sold between 5.0-5.5 million metric tonnes (mt) of bunkers in 2009. The authorities do not record official statistics on bunker sales volumes.
"We are planning to have a new bunkering terminal in Busan port," Roh Ki-Tae, president of Busan Port Authority (BPA) told Bunkerworld Tuesday.
BPA has since 2007 announced plans to build a 60,000-cubic metre (m³) oil terminal in Busan New Port.
A feasibility study for the terminal has been completed, with Chemoil and Hanjin Shipping expected to propose a plan to BPA by the end of March, according to Park Ho-Chul, director of marketing team for BPA.
"Many shipping firms have asked the government to provide oil stations at Busan port. The prospective candidates – Chemoil and Hanjin Shipping – will invest in building the terminal," Park said.
"There may be more candidates interested in the project as it is still in a very early stage," he said.
The port authority hopes to start construction of the terminal in late 2010, Kang Sun-Min, assistant manager for BPA, told Bunkerworld earlier.
Singapore-listed Chemoil, majority owned by fuel oil trading house Glencore, declined to comment to Bunkerworld queries on Tuesday.
BPA has planned for the new terminal to be operated by an international fuel oil trader and/or tank operator in order to secure supply of marine fuel into the Korean bunker market.
By securing imports of fuel oil from a commercial player, the facility would help offset the threat of declining bunker fuel supply from local oil refineries, according to BPA.
South Korean refiners have been supplying less bunker fuel into the country's marine fuel market as they upgrade their plants to produce larger volumes of distillates, which reap higher export margins.
Traditionally, marine fuel sold to foreign vessels in South Korea are sourced exclusively from local refiners.
Busan, Korea's biggest bunkering port, accounts for about 50% of the country's total bunker sales.
The port is estimated to have sold between 5.0-5.5 million metric tonnes (mt) of bunkers in 2009. The authorities do not record official statistics on bunker sales volumes.