[AirUP, On Site] The Only LPG Storage of Korea National Oil Corporation... Transforming into an Ammonia Base

Korea National Oil Corporation Pyeongtaek Storage Base... Operating Since 1989
Storage Capacity 6.2 Million Barrels... Also Serves as a Discounted Oil Supply Base

Pipelines and onshore tanks at the Korea National Oil Corporation Pyeongtaek Storage Base.
[Photo by Korea National Oil Corporation]

[Asia Economy Sejong=Reporter Lee Jun-hyung] The Korea National Oil Corporation (KNOC) Pyeongtaek Storage Base located in Pyeongtaek, Gyeonggi Province. Operating since December 1989, this site is the only one among the nine storage bases established nationwide by KNOC that can store liquefied petroleum gas (LPG). In 1997, KNOC additionally constructed facilities at the Pyeongtaek base to separately store propane, the main component of LPG. The total storage capacity of the base is 6.2 million barrels, with 4.4 million barrels dedicated to LPG storage.

The Pyeongtaek storage base has two marine piers. These marine piers are facilities designed for the large-scale import of LPG or refined oil products. The first pier, completed in 1989, can accommodate vessels up to 50,000 tons. This is why one must cross a bridge approximately 700 meters long from the land base to reach Pier 1. According to KNOC, the tidal range near the West Coast storage bases such as Pyeongtaek is large, which necessitates longer bridges connecting the land base to the coastal piers compared to other storage bases. Unlike Pier 1, the second pier, added in 1998, can only accommodate vessels under 5,000 tons.

Release of Strategic Oil Reserves During Supply Instability

The core role of the Pyeongtaek storage base is to stabilize oil prices. When oil supply becomes unstable, the government releases strategic oil reserves stored at the base to prevent price surges. This year alone, the government has released 14.82 million barrels of strategic oil reserves in three separate instances. Two of these releases were decided in coordination with the International Energy Agency (IEA) and the international community in response to increased energy supply chain instability caused by the Ukraine crisis.

Since 2014, the Pyeongtaek storage base has also served as a supply base for affordable fuel in the metropolitan area. The amount of affordable fuel released monthly from the Pyeongtaek base ranges from 5,000 to 7,000 kiloliters (kL; 1 kL = 1,000 liters). Consequently, dozens of tanker trucks come and go daily at the Pyeongtaek base. The affordable fuel shipment facility at the base can release petroleum at a rate of 60,000 liters per hour, enough to fill a 20,000-liter tanker truck in about 20 minutes.

Panoramic view of Korea National Oil Corporation Pyeongtaek Storage Base. [Photo by Korea National Oil Corporation]

From Oil Storage Base to Ammonia Terminal

Amid the global carbon neutrality trend, the importance of the Pyeongtaek storage base is growing. KNOC is considering converting the Pyeongtaek base into an ammonia receiving terminal. Given the increasing demand for ammonia, classified as a clean energy source, there is a recognized need for additional large-scale receiving terminals domestically. Ammonia shares similar storage and transportation technologies with LPG, allowing the existing infrastructure at the Pyeongtaek base to be reutilized.

Ammonia is gaining attention as a next-generation energy source due to its versatility. Co-firing ammonia is a representative application method. Ammonia has a low calorific value and slow combustion speed, resulting in relatively low power generation efficiency. However, when co-fired with coal at certain ratios, it can maintain power output while reducing carbon emissions. For example, Korea Western Power estimates that co-firing 20% ammonia at the 2,100 MW Taean Thermal Power Plant Units 1 and 2 could reduce annual carbon dioxide emissions by approximately 2.2 million tons. Japan has already developed gas turbines capable of co-firing up to 20% ammonia and is conducting demonstrations at the 1,000 MW Hekinan coal-fired power plant in Aichi Prefecture.

Utilization as a Hydrogen Carrier

Ammonia can also be utilized in the hydrogen economy. Hydrogen gas poses explosion risks and is stored and transported in a liquefied state at minus 253 degrees Celsius, but technical limitations still make large-scale supply challenging. In contrast, ammonia, which combines hydrogen and nitrogen, has a liquefaction point of minus 33 degrees Celsius and relatively higher safety, making it suitable as a hydrogen carrier. Ammonia’s storage capacity per unit volume is 1.5 to 2 times greater than that of liquefied hydrogen, enhancing economic efficiency.

KNOC envisions developing the Pyeongtaek storage base into a hydrogen production hub. The key technology is ‘cracking’ ammonia to extract hydrogen. By establishing ammonia receiving facilities and cracking equipment together at the Pyeongtaek base, ammonia imported from overseas can be immediately processed to extract hydrogen. A KNOC official stated, "Unlike liquefied hydrogen, ammonia’s storage and transportation technologies are already commercialized, making it easier to utilize," adding, "Japan is also considering using ammonia for cluster construction and transportation to facilitate hydrogen import."

This content was produced with the assistance of AI translation services.