The terminal, to be opened in 2017, is being built at a cost of Won622.2 bill won ($582.39 mill), to help the country become a global oil hub, the South Korean energy ministry said on Thursday, acccording to a report from Reuters.
The plan calls for the terminal to be built in two phases, with the first, known as the North Port, having a capacity of 9.9 mill barrels over an area of 295,000 sq m to store oil products.
The energy ministry said in a statement the joint venture, Korea Oil Terminal, involved Korea National Oil Corp (KNOC), Vopak Group and S-Oil Corp.
KNOC has a 51% stake in the venture, with Vopak holding 38% percent and S-Oil 11%, the ministry said, adding that it planned to include two or three more companies in the future, by adjusting the stakes of KNOC and Vopak.
For the second phase, or the South Port, with a capacity of 18.5 mill barrels of crude oil storage over an area of 604,000 sq m., the ministry aims to invest Won994.8 bill ($931.16 mill) by 2020 and set up a separate joint venture.
It added it would ease regulations to boost the oil trading business and improve oil trade-related financial services, Reuters reported.