BUILDING OF UNDERGROUND CRUDE OIL DEPOT

[Anchor Lead]

Construction is under way for an underground crude oil depot in Ulsan, set for completion in 2021. Follow us to the site where the facility is being built 80 meters below ground with state-of-the-art technology to protect against earthquakes and drone attacks.

[Pkg]

We take a car under ground. After a 5 minute drive, a huge cave appears. This is a crude oil depot situated 80 meters below ground. At 30 meters high, 18 meters wide and 3 kilometers long with a total of 8 caves, the site can store over 10 million barrels of crude oil. There is no need for separate containers for storage. The rocks themselves serve as massive tanks. Crude oil will not spill out of the caves because water will act as a barrier, as water does not mix with oil. Water pressure on the cave's external walls is stronger than the force of crude oil wanting to spill out, thus creating a naturally formed tank. This Korean technology is not only economical but can also withstand 7 magnitude earthquakes. Being under ground, the storage site is also safe from drone attacks.

[Soundbite] LEE YEON-GYU(KOREA NAT'L OIL CORP.) : "Compared to storage tanks on ground, this underground facility is semi-permanent and also low in construction and maintenance costs. It's also eco-friendly and safe from fires, drone attacks."

The 18 oil tanks that were on the ground in Ulsan are now gone. On that site now sits a 4.8 trillion won petrochemical facility operated by refinery firm S-OIL Corporation.