South Korea plans to construct the world's fourth largest oil hub as it aims to become a major oil trading post with a total capacity of 56.6 million barrels, South Korea's largest news outlet Yonhap News Agency reported. South Korea began expanding its number of oil storage facilities by opening a location in Yeosu in 2013 with the capacity to hold up to 8.2 million barrels of oil.
The Ministry of Trade, Industry and Energy said it expects two more facilities will be finished in 2020, which have a combined capacity of up to 28.4 million barrels of oil. South Korea hopes to have a total capacity of 56.6 million barrels - or 4.6 million above Singapore's capacity. Yoon Sang-jick, trade and energy minister, said the country will invest $1.8 billion in securing the oil storage terminals, Arirang News reported.
Kim Jun-dong, the ministry's director-general for energy and resources policy, said the nation's strategic oil reserves will be lower when it shifts its focus on to creating this international oil hub, but will still be able to maintain 90 days of reserves.
"There will not be a problem to the level of the country's strategic reserve as we are only seeking to utilize excessive capacity while maintaining a level recommended by the international community," Jun-dong told reporters, according to Yonhap.