Busan, South Korea, is a cornerstone of global shipbuilding and maritime trade. This article, part of Chevron's Ports Series, highlights Chevron’s role in supporting Korea’s thriving newbuild sector with advanced marine lubricants. Leveraging long standing partnerships and a unique domestic lubricant manufacturing and supply chain, Chevron ensures that optimal performance is available in the heart of one of the world’s busiest port communities.

Busan, South Korea, blends a rich shipbuilding heritage with a sustained reputation for enterprise and advanced technology. As the world’s sixth-largest port, Busan handles over 22 million twenty-foot equivalent units (TEUs) annually, underscoring its strategic importance in international trade.

Korea is also a shipbuilding powerhouse. In 2023, Korea’s order backlog reached 40 million Compensated Gross Tons (CGT) and remains the only country to rival China’s dominance in the sector.¹

Ship building at this scale requires a robust and dependable lubricant supply chain; one that can cope with high demand, but also cater to the ever-advancing technology required to bring new ships in line with tightening compliance regimes.

A Long-Standing Partnership

Busan's prominence as a major hub of maritime trade is a result of both its historical significance and strategic development. Busan has long been an important coastal city because of its strategic location. On the southeastern tip of the Korean Peninsula, Busan provides natural deep-water ports and serves as a convenient gateway for trade and cultural exchange between Korea, Japan, and China.

Busan’s transformation into a major global port city is a success story as notable as any in the developing world. Sustained investments in port infrastructure, coupled with a burgeoning shipbuilding industry, have catapulted Busan to international renown.

Chevron has been a service provider in South Korea since the mid-1960s. In tandem with the growth in Busan’s shipbuilding industry, so has Chevron’s work expanded to support the supply of marine lubricant in the region. Today, its advanced lubricants support a significant proportion of new builds produced in South Korea (over 10 million Compensated Gross Tons (CGT) in 2023), as well as a large share of the more than 50,000 vessels that visit the port’s 190 terminals each year.

Chevron’s lubricant capabilities in Korea are strengthened by its 50% ownership stake in the GS Caltex refinery in Yeosu, which processes 800,000 barrels of crude oil per day. Having this production capability in-country significantly reduces ton-mile logistics for Chevron products, boosting affordability and helping support a lower carbon supply chain. Buoyed by the cost advantages associated with this domestic supply capability, Chevron has invested more than $4.6 billion in heavy oil upgrading facilities in South Korea since 2004.

Building Better Ships

The pace of technical development in shipbuilding has gathered significant pace in recent years. As HD Hyundai Vice Chairman, Chung Ki-sun, told The Korean Herald in June 2024, “We will lead the transformation of the ocean by preemptively responding to the change of technology through the integration of eco-friendly and digital technologies to develop futuristic ships.”

Chevron is at the forefront of developing lubricants that align with advanced propulsion technologies and alternative fuel types. As these technologies have emerged in Korea, Chevron has created an extensive range of lubricants to match emerging demands. For example, the Taro® Ultra range of marine engine cylinder lubricants are designed to meet the demands of various alternative fuels, such as methanol, LNG, and LPG. These marine engine lubricants from Chevron are tailored to operate under varying sulfur content conditions and to perform and comply with new emission standards. Chevron's commitment to innovation is evident in their collaboration with industry leaders to support dual-fuel and alternative fuel-powered vessels, providing crucial services like the DOT.FAST® onboard and onshore oil analysis. This proactive approach not only enhances engine efficiency but also aids shipowners and operators in navigating the transition to a lower carbon future, reinforcing Chevron's role as a key enabler of advancements in maritime propulsion technologies in Busan and beyond.

Human Energy

What sets Chevron apart is how it maximises customers’ options by supporting a range of lower carbon technologies and alternative fuel options with compatible lubricants. Chevron is extending this offering in the Asia-Pacific region, with plans to further expand its products and services in Vietnam.  Glen Phua is Regional Manager for Chevron Marine Lubricant’s Asia-Pacific business. With a career spanning over two decades in the maritime sector in the region, Glen is well aware of the scale of the new building sector in Korea and has a firm handle on the critical support Chevron Marine Lubricants offers. He believes that, "Asia Pacific is a very important region for maritime trade, accounting for 56% of global maritime container traffic. Twenty of the world’s top 30 container ports are in Asia, with China, Korea, and Japan representing around 85% of ship newbuilding."²

Glen continues, "For Chevron, Asia Pacific is the largest region in terms of supply. We are expanding our supply network in Asia, with a significant focus on North Asia, including our partnership with GS Caltex in Korea. Our New Build team has established strong relationships with shipyards, original equipment manufacturers (OEMs), site offices, and the supply chain in major shipyard countries. We also have technical and customer support teams across the region.”

Chevron has also invested in building full teams of sales, customer service, and technical support in Korea. As such, Chevron customers benefit from a full-service provider which delivers effective and scalable lubricant supplies on demand.

As Glen Phua puts it: "We follow our customers' lead. Our product range is developed to meet their needs, and we are ready to deliver marine lubricants that will work with any future fuels."

Did you know?

Chevron’s business in South Korea reaches deeper than marine lubricant supply. Here are some facts you might not know:

• Service Stations: GS Caltex, the joint venture, supplies approximately 2,500 service stations and 400 LPG filling stations, amounting to a 25% share in South Korea’s fuel business.
• Community Initiatives: Chevron, through GS Caltex, supports a wide range of scholarships to high school and college students, free meals for senior citizens, English lessons taught by native speakers to elementary and middle school students in remote areas, and supports employee volunteerism in Korea.

Chevron can support customers on their lower carbon journeys by providing products tested and approved for use on a range of engine fuels. Contact our team in Busan to find out more.