Odfjell has announced the approval of a new expansion project at Odfjell Terminals Korea (OTK). The project comprises a new tank pit of ten tanks and will significantly broaden services and product handling capacity at the leading Ulsan terminal.
The project, named E5, will increase OTK’s capacity by 28% to exceed 400,000 CBM. The ten carbon steel tanks will be specially designed to store high-demand commodities such as benzene, methanol, aromatics, and ethanol. The expansion aligns with the robust storage demand outlook in Northeast Asia.
"OTK has demonstrated its industry-leading operations and safety record over many years. The E5 expansion underscores Odfjell’s strong conviction and commitment to further consolidate OTK’s position as a regional leader. The project is a great example of Odfjell Terminal’s growth strategy, centered around creating resilient, long-term value for our customers and shareholders," said Adrian Lenning, Managing Director at Odfjell Terminals.
Strengthening a Long-Term Strategic Partnership
A key driver for E5 is the S-OIL Shaheen project, a $7 billion crude-to-chemical facility being built in close proximity to OTK. The E5 expansion will connect directly to the Shaheen facility via pipeline, enabling efficient exports from Shaheen to global markets via seagoing vessels. OTK and S-OIL have signed a ten-year firm memorandum of understanding (MoU) for three tanks (23,990 cbm) to accommodate the Shaheen Project.
“We are very pleased to expand our strategic partnership with S-OIL and proud that OTK will contribute to the success of the game-changing Shaheen project. This investment decision represents a major milestone for OTK,” Lenning said.
Construction of the E5 expansion is scheduled to commence in the first half of 2025. The new tanks are expected to be operational by the second half of 2026.
