On 1 August, the Ulsan Port Authority (UPA) signed a US$17.6 million equity investment agreement with Hyundai Oil Terminal Corporation.
This partnership aims to develop South Korea’s alternative marine fuel supply chain with Ulsan Port as its hub.
This investment is a key step following the government’s emergency economic ministerial meeting in November 2023, where the ‘Plan to Establish an Alternative Marine Fuel Supply Chain’ was introduced. UPA is spearheading efforts to enhance the competitiveness of South Korea’s ports by expanding storage facilities for alternative marine fuels like green methanol.
Under this agreement, UPA will engage in the terminal business, focusing on utilizing 100,000kl of the tank terminal’s storage capacity. Additionally, UPA will work towards creating green shipping corridors to facilitate the distribution of alternative marine fuel to both domestic and international energy companies and shipping lines.
Furthermore, Hyundai Oil Terminal will leverage UPA’s investment to support a new terminal project valued at nearly KRW 300 billion (US$219 million). This project includes expanding storage facilities at Ulsan’s New Port by 380,000kl, with the initial phase dedicated to chemicals, oils, and eco-friendly fuels like green methanol and ethanol. The first phase is expected to commence commercial operations in the first half of 2026.
Following the completion of the terminal expansion, Ulsan Port’s annual cargo capacity is projected to reach approximately 2.5 million kl with environmental energy cargo volumes anticipated to total around 800,000kl per year.
This announcement builds on the June MoU between UPA and Hyundai Oil Terminal, which established a strategic collaboration for supplying alternative marine fuel at Ulsan Port.
“This investment is part of UPA’s efforts to create an alternative marine fuel supply chain to fulfil the government’s policy. The agreement also marks the first time that UPA has acquired a direct stake in a tank terminal and its operations. We will be operating eco-friendly ships based at Ulsan Port, contributing to decarbonization and creating new growth engines for Korea’s shipping and port industry by establishing green shipping corridors between Korea and the United States,” mentioned Kim Jae-gyun, UPA President.
