Odfjell Terminals Korea (OTK) and S-OIL have entered into a milestone ten-year storage contract comprising three tanks (23,990 cbm) within OTK’s E5 expansion project. The contract represents an important cornerstone for the E5 project and lays the foundation for an exciting strategic partnership between the two companies.
The E5 project involves the development of a new tank pit with ten state-of-the-art carbon steel storage tanks (87,940 cbm). Upon completion, the expansion will increase OTK’s total storage capacity by 28%, surpassing 400,000 cubic meters (CBM).
The contract with S-OIL is linked to their groundbreaking Shaheen project, a USD 7 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,” said Adrian Lenning, Managing Director of Odfjell Terminals.
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.