South Korea Midstream Oil and Gas Industry Outlook to 2020: Market Forecasts for Liquefied Natural Gas (LNG), Oil Storage, Pipelines and Gas Processing

1 Table of Contents 2

1.1 List of Tables 6

1.2 List of Figures 9

2 Introduction 10

2.1 What is This Report About? 10

2.2 Market Definition 10

3 South Korea Energy Sector 12

3.1 South Korea Energy Sector, Market Overview 12

3.2 South Korea Energy Sector, Oil 13

3.2.1 South Korea Oil, Overview 13

3.2.2 South Korea Oil, Supply and Demand Balance 13

3.2.3 South Korea Crude Oil, Regulatory Structure 17

3.3 South Korea Energy Sector, Gas 18

3.3.1 South Korea Gas, Overview 18

3.3.2 South Korea Gas, Supply and Demand Balance 18

3.3.3 South Korea Natural Gas, Regulatory Structure 24

4 South Korea LNG Industry 25

4.1 South Korea LNG Industry, Regasification 25

4.1.1 South Korea LNG Industry, Regasification, Key Data 25

4.2 South Korea LNG Industry, Regasification, Overview 25

4.2.1 South Korea LNG Industry, Total Regasification Capacity 25

4.3 South Korea LNG Industry, Regasification Capacity by Company 27

4.4 South Korea LNG Industry, Regasification Capacity by Terminal 28

4.5 South Korea LNG Industry, Regasification Asset Details 29

4.5.1 South Korea LNG Industry, Regasification Active Asset Details 29

4.5.2 South Korea LNG Industry, Regasification Planned Asset Details 34

5 South Korea Oil Storage Industry 37

5.1 South Korea Oil Storage Industry, Key Data 37

5.2 South Korea Oil Storage Industry, Overview 37

5.3 South Korea Oil Storage Industry, Storage Operations 37

5.3.1 South Korea Oil Storage Industry, Total Storage Capacity 37

5.4 South Korea Oil Storage Industry, Storage Capacity by Major Companies 39

5.5 South Korea Oil Storage Industry, Storage Capacity Share by Area 41

5.6 South Korea Oil Storage Industry, Storage Capacity by Terminal 42

5.7 South Korea Oil Storage Industry, Asset Details 45

5.7.1 South Korea Oil Storage Industry, Active Asset Details 45

5.7.2 South Korea Oil Storage Industry, Planned Asset Details 83

6 South Korea Oil and Gas Pipelines Industry 85

6.1 South Korea Oil Pipelines 85

6.1.1 South Korea Oil Pipelines, Key Data 85

6.1.2 South Korea Oil Pipelines, Overview 85

6.2 South Korea Oil and Gas Pipelines Industry, Petroleum Products Pipeline Length by Major Companies 85

6.3 South Korea Oil and Gas Pipelines Industry, Petroleum Products Pipelines 87

6.4 South Korea Oil and Gas Pipelines Industry, Oil Pipelines Asset Details 88

6.4.1 South Korea Oil and Gas Pipelines Industry, Oil Pipelines Active Asset Details 88

6.5 South Korea Gas Pipelines, Overview 103

6.6 South Korea Oil and Gas Pipelines Industry, Natural Gas Pipeline Length by Company 103

6.7 South Korea Oil and Gas Pipelines Industry, Natural Gas Pipelines 104

6.8 South Korea Oil and Gas Pipelines Industry, Gas Pipelines Asset Details 105

6.8.1 South Korea Oil and Gas Pipelines Industry, Gas Pipelines Active Asset Details 105

7 South Korea Gas Processing Industry 107

7.1 South Korea Gas Processing Industry, Overview 107

7.2 South Korea Gas Processing Industry, Gas Processing Capacity by Company 107

7.3 South Korea Gas Processing Industry, Capacity Contribution of Various Provinces 107

7.4 South Korea Gas Processing Industry, Gas Processing Capacity 108

7.5 South Korea Gas Processing Industry, Asset Details 109

7.5.1 South Korea Gas Processing Industry, Active Asset Details 109

8 Recent Contracts 110

8.1 Detailed Contract Summary 110

8.1.1 Awarded Contracts 110

9 Recent Developments 131

9.1 Other Significant Developments 131

9.1.1 Dec 23, 2015: South Korea To Receive New LNG Cargo From Peru 131

9.1.2 Dec 18, 2015: KOGAS Records

15.7% Decrease In Domestic Gas Sales In November Year-On-Year 131

9.1.3 Dec 18, 2015: Gazprom Neft Receives Third Consignment Of Iraqi Oil 131

9.1.4 Dec 16, 2015: KOGAS Concludes Stage 1 Of Samcheok LNG Production Base In South Korea 132

9.1.5 Dec 12, 2015: General Dynamics NASSCO Launches The Independence, First Ship In Series Of ECO Class Tankers for SEA-Vista Fleet 133

9.1.6 Nov 26, 2015: HHI In Search Of New Local Partner To Bid For GAIL's LNG Carrier Orders 134

9.1.7 Nov 24, 2015: Kogas Reports

12.1% Decrease In LNG Sales In October Year On Year 135

9.1.8 Nov 15, 2015: Bechtel Delivers First Cargo of LNG for Santos GLNG Project 135

9.1.9 Nov 11, 2015: Kogas Records 14% Decrease In LNG Imports In January To September 2015 136

9.1.10 Nov 06, 2015: Petronas Floating Lng2 Takes Shape With New Construction Milestone 136

9.2 New Contracts Announcements 137

9.2.1 Dec 11, 2015: Wartsila Develops Inert Gas Solution For 17 New LNG Carriers 137

9.2.2 Dec 01, 2015: Wartsila: Further Orders For Wartsila Gas Cargo Handling Systems – 11 New Gas Carriers To Rely On Wartsila 138

9.2.3 Nov 30, 2015: DSLNG And GE Signed Contract Service Agreement For The LNG Plant 140

9.2.4 Nov 26, 2015: Sodexo Partners With Shell Australia To Deliver Facilities Management Services For Prelude FLNG 141

9.2.5 Nov 25, 2015: MacGregor Wins Several Orders For Pusnes Deck Machinery In South Korea 143

9.2.6 Nov 11, 2015: Kogas, EDF Sign Eight-Year LNG Supply Deal 143

10 Appendix 145

10.1 Abbreviations 145

10.2 Methodology 145

10.2.1 Coverage 145

10.2.2 Secondary Research 146

10.3 Disclaimer 146

Table 1: Oil Industry, South Korea, Historic and Forecast of Oil Consumption (mbd), 2000–2020 14

Table 2: Oil Industry, South Korea, Historic and Forecast of Oil Exports and Imports (mbd), 2000–2020 16

Table 3: Gas Industry, South Korea, Historic and Forecast of Gas Consumption (bcf), 2000–2020 19

Table 4: Gas Industry, South Korea, Historic and Forecast of Gas Imports (bcf), 2000–2020 21

Table 5: Gas Industry, South Korea, Historic Natural Gas Reserves (tcf), 2000–2014 23

Table 6: LNG Industry, South Korea, Regasification Key Statistics, Dec 2015 25

Table 7: LNG Industry, South Korea, Total Regasification Capacity (bcf), 2010–2020 25

Table 8: LNG Industry, South Korea, Regasification Capacity by Company (bcf), 2010–2020 27

Table 9: LNG Industry, South Korea, Regasification Capacity (bcf), 2010–2020 28

Table 10: Oil Storage Industry, South Korea, Key Statistics, Dec 2015 37

Table 11: Oil Storage Industry, South Korea, Total Storage Capacity (mcm), 2010–2020 37

Table 12: Oil Storage Industry, South Korea, Storage Capacity by Major Companies (mcm), 2010–2020 39

Table 13: Oil Storage Industry, South Korea, Storage Capacity (mcm), 2010–2020 42

Table 14: Oil Storage Industry, South Korea, Storage Capacity (mcm), 2010–2020 (Contd.1) 43

Table 15: Oil Storage Industry, South Korea, Storage Capacity (mcm), 2010–2020 (Contd.2) 44

Table 16: Oil and Gas Pipelines Industry, South Korea, Oil Pipelines Key Statistics, Dec 2015 85

Table 17: Oil and Gas Pipelines Industry, South Korea, Petroleum Products Pipeline Length by Major Companies (km), Dec 2015 85

Table 18: Oil and Gas Pipelines Industry, South Korea, Petroleum Products Pipelines, Dec 2015 87

Table 19: Oil and Gas Pipelines Industry, South Korea, Natural Gas Pipeline Length by Company (km), Dec 2015 103

Table 20: Oil and Gas Pipelines Industry, South Korea, Natural Gas Pipelines, Dec 2015 104

Table 21: Gas Processing Industry, South Korea, Gas Processing Capacity by Company (mmcf), Dec 2015 107

Table 22: Gas Processing Industry, South Korea, Capacity Contribution of Various Provinces (mmcf), Dec 2015 107

Table 23: Gas Processing Industry, Gas Processing Capacity in South Korea (mmcf), Dec 2015 108

Table 24: Wartsila Corporation Secures Contract From Shell For The Supply Of Three 8-Cylinder Wartsila Dual-Fuel Engines For Liquefied Natural Gas (LNG) Bunkering Vessel 110

Table 25: Winterthur Gas & Diesel (WinGD) Secures Contract From Daewoo Shipbuilding & Marine Engineering (DSME) 111

Table 26: MacGregor Secures Contracts To Provide Its Pusnes Deck Machinery Packages For Various Ship Types Being Constructed By The Hyundai Group And Sungdong Shipbuilding & Marine Engineering 113

Table 27: Hyundai Heavy Industries (HHI) Secures Contract Worth Approximately KRW87.9 Billion (US$77 Million) 114

Table 28: Gaztransport & Technigaz (GTT) Secures Contract From Daewoo Shipbuilding & Marine Engineering (DSME) 116

Table 29: Bestobell Marine (Bestobell Valves) Secures Contract For The Supply Of High Pressure (HP) Cryogenic Globe Valves For Pump And Vaporizer Skids For Six Liquefied Natural Gas (LNG) Carriers Being Built At Daewoo Shipbuilding & Marine Engineering (DSME) Shipyard 117

Table 30: Gaztransport & Technigaz (GTT) Secures Contract From Samsung Heavy Industries (SHI) 118

Table 31: Gaztransport & Technigaz (GTT) Secures Contract From Daewoo Shipbuilding & Marine Engineering (DSME) 120

Table 32: Hyundai Heavy Industries (HHI) Secures Contract Worth Approximately KRW91.4 Billion (US$76.79 Million) From KSS Line (formerly Korea Special Shipping) 121

Table 33: Wartsila Secures Two Contracts From Hyundai Heavy Industries (HHI) For The Supply Of Seawater Propane 123

Table 34: Bestobell Marine (Bestobell Valves) Secures Contract From Hyundai Heavy Industries (HHI) 124

Table 35: Gaztransport & Technigaz (GTT) Secures Contract From Hyundai Samho Heavy Industries 126

Table 36: STX Offshore & Shipbuilding Secures Contract From John Fredriksen For The Construction Of Two Very Large Crude Carriers (VLCCs) Each With 3,00,000 Dead-Weight Tonnage (DWT). 127

Table 37: Hyundai Heavy Industries (HHI) Secures Contract From Knutsen NYK Offshore Tankers For The Construction Of 1,56,000 Dead Weight Tonnage (DWT) 128

Table 38: MacGregor Secures Contract From Daewoo Shipbuilding & Marine Engineering (DSME) For The Supply Of Hatlapa Deck Machinery For 10 Liquefied Natural Gas (LNG) 129

Figure 1: Energy Industry, South Korea, Primary Energy Consumption Split by Fuel Type (%), 2014 12

Figure 2: Oil Industry, South Korea, Historic and Forecast of Oil Consumption (mbd), 2000–2020 15

Figure 3: Oil Industry, South Korea, Historic and Forecast of Oil Exports and Imports (mbd), 2000–2020 17

Figure 4: Gas Industry, South Korea, Historic and Forecast of Gas Consumption (bcf), 2000–2020 20

Figure 5: Gas Industry, South Korea, Historic and Forecast of Gas Imports (bcf), 2000–2020 22

Figure 6: Gas Industry, South Korea, Historic Natural Gas Reserves (tcf), 2000–2014 24

Figure 7: LNG Industry, South Korea, Total Regasification Capacity (bcf), 2010–2020 26

Figure 8: LNG Industry, South Korea, Regasification Capacity by Company (bcf), 2010–2020 27

Figure 9: Oil Storage Industry, South Korea, Total Storage Capacity (mcm), 2010–2020 38

Figure 10: Oil Storage Industry, South Korea, Storage Capacity by Major Companies (mcm), 2010–2020 40

Figure 11: Oil Storage Industry, South Korea, Storage Capacity Share by Area (%), 2015 41

Figure 12: Oil and Gas Pipelines Industry, South Korea, Petroleum Products Pipeline Length by Major Companies (km), Dec 2015 86