Odfjell Terminals Korea, part of Norwegian based and Oslo-listed Odfjell SE, and South Korean oil refining and petrochemical company S-OIL has strengthen their strategic partnership with ten-year storage agreement.

Odfjell Terminals Korea (OTK) and S-OIL entered beginning of 2025 into a ten-year storage contract comprising three tanks (23,990 cbm) within OTK’s E5 expansion project.

The E5 project involves the development of a new tank pit with ten state-of-the-art carbon steel storage tanks (87,940 cbm), and upon completion, the expansion will increase OTK’s total storage capacity by 28%, surpassing 400,000 cubic meters (CBM) as the company declares.

OTK states that the new storage 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.

OTK informs that the 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. 

Adrian Lenning, Managing Director of Odfjell Terminals, says that “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.”