Odfjell Terminals Korea (OTK) and S-OIL have strengthened their strategic partnership with a milestone 10-year storage contract, comprising three tanks (23,990 m3) within OTK’s E5 expansion project.
The E5 project involves the development of a new tank pit with 10 state-of-the-art carbon steel storage tanks (87,940 m3). Upon completion, the expansion will increase OTK’s total storage capacity by 28%, surpassing 400,000 m3. Construction of the E5 expansion is set to commence in the first half of 2025, with the new tanks expected to be operational by the second half of 2026.
The contract with S-OIL is linked to their groundbreaking Shaheen project, a $7 billion (€6.5 billion) crude-to-chemical facility under construction near OTK. The E5 expansion will be directly connected to Shaheen via pipeline, enabling efficient exports from Shaheen to global markets via seagoing vessels. This marks a major milestone in the development of Korea’s petrochemical industry, further strengthening Ulsan’s position as a global chemicals hub.
‘The long-term agreement underscores the growing collaboration between OTK and S-OIL and sets the stage for additional business opportunities in the Ulsan region, driven by new production capacity and trade flows linked to the Shaheen project,’ says Adrian Lenning, managing director of Odfjell Terminals.
