South Korea launches project to become Asian oil storage hub

SEOUL, Sept 4 (AFP) South Korea today launched an ambitious project to become Northeast Asia's oil storage hub, which officials said will create new business opportunities and ensure energy security. brA joint venture contract was signed by state-run Korea National Oil Corp. (KNOC), local refiner SK Energy, GS-Caltex, Oiltanking Asia Pacific and Glencore Singapore, officials said. brKNOC agreed to hold a 29 percent stake in the joint venture, which will invest 320 million dollars to increase storage at the southern port of Yeosu to six million barrels by 2011. brSouth Korea, the world's fifth largest crude importer, also plans to build new storage facilities at Ulsan on the southeast coast. brDetails of work there have not been announced but the aim is for Yeosu and Ulsan to hold a combined 28 million barrels. brSouth Korea imports all its crude needs and officials say the creation of a hub storage facility would help secure oil security. brThis is the first pilot project which has been launched as part of the government's drive to establish a Northeast Asia oil hub, the Ministry of Knowledge Economy said in a statement.