In the beginning of 2025, Odfjell Terminals Korea (OTK) and S-OIL 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.”
Managing Director of Odfjell Terminals, Adrian Lenning
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.
About Odfjell Terminals
Odfjell Terminals provides safe and efficient storage for vital liquids, chemicals, and oil products at strategic international shipping hubs in Asia, the USA, and Europe.
Odfjell Terminals Korea (OTK) has been operational since 2002. With its 85 tanks and 313,710 cbm storage capacity, the terminal can handle virtually all kinds of chemicals. Odfjell SE owns 50% of OTK’s shares through its subsidiaries.
About S-OIL
S-OIL is a leading South Korean oil refining and petrochemical company, operating one of the world’s largest refineries in Ulsan. A subsidiary of Saudi Aramco, S-OIL is a key player in the Asian energy market.
The Shaheen project is part of Saudi Aramco’s long-term strategy to diversify its portfolio and move beyond traditional refining, aligning with global trends toward petrochemicals and sustainability in energy production.
Contact
Christophe Mediavilla
Operational Excellence Manager, Odfjell Terminals
E-mail: christophe.mediavilla@odfjell.com
Tel: +47 906 33 339 / +47 55 27 00 00
Anngun Dybsland
VP Communications, Odfjell
E-mail: media@odfjell.com
Tel: +47 415 48 854 / +47 55 27 00 00
