This paper proposes a methodology to automatically extract components of an oil storage tank from terrestrial laser scanning (TLS) point clouds, and subsequently to create a three-dimensional (3D) solid model of the tank for numerical simulation. The proposed method is integrated into a smart analysis layer of a digital twin platform consisting of three main layers: (1) smart analysis, (2) data storage, and (3) visualisation and user interaction. In this proposed method, primary components of the tank were automatically extracted in a consecutive order from a shell wall to roof and floor. Voxel-based RANSAC is employed to extract voxels containing point clouds of the shell wall, while a valley-peak-valley pattern based on kernel density estimation is implemented to remove outlier points within voxels representing to the shell wall and re-extract data points within voxels adjoined to the shell wall. Moreover, octree-based region growing is employed to extract a roof and floor from remaining point clouds. An experimental showed that the proposed framework successfully extracted all primary components of the tank and created a 3D solid model of the tank automatically. Resulting point clouds of the shell wall were directly used for estimating deformation and a 3D solid model was imported into finite element analysis (FEA) software to assess the tank in terms of stress-strain. The demonstration shows that TLS point clouds can play an important role in developing the digital twin of the oil storage tank.