Hyundai Oilbank Co., South Korea’s fourth-largest oil refiner, said Tuesday that it will spend 100 billion won ($86 million) on building a new storage facility for oil and petrochemical products.

The facility in Ulsan, 414 kilometers southeast of Seoul, includes a 300,000-kiloliter tank, it said.

Construction of the facility will be completed in the second half of 2013, Hyundai Oilbank said.

Hyundai Oilbank will become the first domestic oil refiner that runs commercial oil storage facilities as it plans to store oil from local suppliers and handle oil product-related cargoes in transit from Japan and Singapore.

Hyundai Oilbank is under the wing of Hyundai Heavy Industries Co., the world’s largest shipbuilder. (Yonhap News)