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South Korea Out of Onshore Oil Storage for Third-Party Lease

  • Third-party tanks are open to international traders, producers
  • Glut in crude, fuels prompts global scramble to secure storage
Updated on

South Korea has run out of oil storage space that can be leased to third-party companies, according to people with knowledge of the matter, as a global glut spurs a scramble for places to store crude.

State-run Korea National Oil Corp. currently rents out about 30 million barrels of onshore tank space to third parties including international traders and producers. Such leasees typically rent these tanks to support trading and supply activities in the region under what’s known as the joint-stockpiling scheme, which requires them to divert inventories to domestic users in the event of an emergency. Oilhub Korea Yeosu Co., in which KNOC has the largest stake, also has 8.2 million barrels of storage capacity for commercial use.