WORLD> Asia-Pacific
S. Korea initiates Northeast Asian oil hub project
(Xinhua)
Updated: 2008-09-04 15:45

SEOUL -- South Korea on Thursday officially launched its ambitious Northeast Asian oil holding and trading hub project in Yeosu, a city 455 kilometers south of Seoul, said the Ministry of Knowledge Economy.

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According to the ministry, foreign companies will invest 271 million US dollars to expand oil storage facilities, owned by the state-run Korea National Oil Cop (KNOC).

The money is to be used for constructing 57 new bunkers and three docks on 211,000 square-meters of unused land to store 6 million tons of oil, the ministry said.

The venture will be jointly run by KNOC and Oiltanking, and other South Korean partners including SK Energy and GS-Caltex will hold a 51 percent stake.

The ministry said that through this project Yeosu city hopes to become a regional oil hub like Singapore's Juong Island and the Gulf Coast of the United States.