Approaching refinery safety as an environmental issue: an interview with Sung Dae-kyung

In oil refineries, a greater environmental risk than emissions lies in aging pipelines, as seawater often corrodes old pipes along ports where oil is loaded onto ships. In this interview, Sung Dae-kyung at SK Trading International's Marine Shipping department discusses the importance of operational safety, improving energy efficiency, and the role of policy in advancing sustainable fuels and a lower-carbon future.

Could you tell us about the work you’re currently doing?

Our company operates a large refinery in Ulsan. We import crude oil from the Middle East and use it in our refining processes to directly produce products we’re all familiar with—such as gasoline, diesel, kerosene, and bunker fuel. My department is responsible for storing the finished products in large storage tanks before they’re exported. I serve as the leader of the department responsible for safely operating and managing the docks where ships come and go, as well as the storage tanks.

You mentioned that you export a significant amount of petroleum products. Is there any aspect of that process that you consider most important?

First of all, since it’s a field site—and in a way, a factory—it’s a very rough environment. Because it’s so rough, accidents must never occur. The most serious accidents would be, for example, fires or explosions. Since we handle oil, sparks can fly, or other factors can cause a major fire—and that fire could result in many people getting injured or, in severe cases, even dying. Working in the petrochemical industry, we encounter various types of accidents, and fatal incidents often occur due to a wide range of causes. So, our first mission is to prevent such incidents from happening.

Another unique aspect of our department—unlike most others handling petroleum products—is that we’re in charge of shipping, and we’re right next to the ocean. With the sea nearby and ships coming and going, the critical connection point is where we transfer products from onshore tanks to ships—and that connection point is right in the middle of the ocean. So, if there’s an operational error, or if equipment is outdated or malfunctioning due to other factors—as you may have heard of in past incidents like the GS Caltex oil spill—spilling oil into the sea causes massive environmental pollution. There was an incident in the past near Taean where a ship from Samsung Heavy Industries spilled oil, and the entire nation mobilized to clean it up. Just like that, preventing marine oil spills, fires, explosions, and leaks is our top priority. Accordingly, we view it as our mission to produce, load, and export our products safely and efficiently.

Your second point about preventing oil spills into the ocean seems like a crucial environmental challenge to prevent water pollution. Are there any specific efforts you’re undertaking to address this?

In our case, our biggest concern is that our factory is nearly 60 years old. While the pipes look very sturdy on the outside—made of carbon steel—they inevitably corrode when exposed to water over a long period of time. When corrosion occurs, leaks naturally happen at weak points, and there’s a risk of oil spills. Since I’ve been here for about two years now, figuring out how to systematically manage this has been my biggest concern. So, for the pipelines floating at sea, we erect scaffolding every 10 years—enough for workers to climb along the pipes—and conduct detailed inspections one by one. At points where significant corrosion is detected, we proactively carry out repairs. We implement this cycle at each pier on a 10-year rotation. We view this as the most fundamental and crucial task for preventing marine pollution accidents.

Another key aspect, alongside facility management, is operational management in accordance with procedures and regulations. If a connection between a vessel and a pipeline is made incorrectly during operation—for example, if it’s not secured tightly—it could lead to a leak. That’s why we continuously train our team members to strictly follow operating regulations. And while we hope such incidents never occur, in the event of a spill involving oil or liquefied gas, we must ensure no one gets injured or inhales harmful substances. So when handling these products, we always use protective gear like respirators to ensure that, at the very least, no one gets hurt.

Aside from spill accidents and water pollution, this seems like an energy-intensive business. Are there any efforts you’re making to reduce energy consumption in preparation for the net-zero era?

Basically, our factory uses steam the most to maintain stable production. To explain what I mean by “steam”: when we refine oil, the bunker oil that comes out at the very bottom—if left at room temperature, it solidifies and becomes thick and viscous. Therefore, to keep it flowing like a liquid, we raise the temperature above a certain level, taking viscosity into account. To do that, we purchase steam from various sources. 

Whether we buy steam or generate a lot of it at the plant, it all costs money, so figuring out how to reduce steam consumption was the most critical task for lowering operating costs. It’s actually quite simple. In a way, it’s a very straightforward idea: lower the temperature as much as possible while keeping the bunker oil from solidifying. But once it solidifies, it creates a huge amount of work. So, one approach is to leave some margin and figure out how to lower the temperature as much as possible—that’s one way to cut costs. 

Another is that there are small-scale steam producers nearby, outside our company. For example, these companies are gaining attention these days as eco-friendly businesses; they generate steam by incinerating waste or using manure. These companies are actually quite close by. If we use steam from a nearby source instead of our own steam from far away—since it travels through pipes anyway—there’s less loss. That way, we can use steam with no loss at a lower cost, which allows us to reduce the total volume and provides economic benefits. I recall some projects we’ve undertaken along those lines.

There’s also growing interest in ships that use eco-friendly fuels. How does the industry actually view these efforts? Do you think they’re feasible?

I haven’t really considered eco-friendly ships yet. The hottest trend right now is eco-friendly jet fuel—we’ve actually exported it a few times. So, if we purchase Sustainable Aviation Fuel (SAF) and process it at our plant in a certain proportion, we can obtain eco-friendly certification and export it at a premium. I think we need to pursue initiatives like that, but rather than companies taking the lead, I believe some government policy is necessary. Since it involves actual costs and requires a financial investment, a premium is essential. Creating that premium market requires some form of government support or incentives.

It’s the same with electric vehicles right now. Just as people are now driving electric vehicles because of subsidies, I think the government needs to take the lead initially to stimulate the production of eco-friendly aircraft and similar products. Once the market stabilizes, we can then transition to a sustainable model. I’ve also noticed that research institutes are working on developing various branding strategies and other initiatives to expand this sector, including in the shipping industry. We expect these initiatives to be implemented gradually as we assess whether they are feasible or not.

You mentioned policy, and given that your work involves such extensive international exchange, has the trend toward carbon neutrality in the international shipping industry brought about any changes in your operations? Or do you think the relevant policies are still underdeveloped?

Carbon neutrality is the fourth perspective I mentioned earlier, and within that fourth perspective, energy conservation will play a leading role. While this relates to our efficiency, we’ve also been strongly driven—not only from an environmental standpoint but also to reduce fuel costs. That’s the first pillar. As for switching to eco-friendly fuels, nothing has really materialized yet, but I understand the company is focusing heavily on electricity and LNG and pushing that direction. If our energy policy were to shift in that direction, I think we’d have to adapt by pursuing electrification—though I don’t believe that directive has reached the individual departments yet.