Finnish to English Other General / Conversation / Greetings / Letters

I don't feel that I have a full grasp of the term "yhteydessä", despite it being a very common expression in writing.

Excerpt from a description of guidelines for constructing a hydraulic system:

"Venttiilit sijoitetaan erilliseen tai öljysäiliön yhteyteen rakennettuun venttiilipaneeliin tai venttiiliryhmään."

What is the physical position described by "yhyteydessä"/"yhteyteen" here?

For example, does it simply mean "next to", or does it imply that the oil reservoir is *connected* in some way (via ducts/piping/etc.) to the valve panel?

Thanks