Odfjell Terminals Korea (OTK) will expand storage capacity in Ulsan. The E5 project will boost OTK’s capacity by 28% to exceed 400,000 cbm.
The approved expansion, as confirmed by Odfjell, comprises a new tank pit of 10 tanks and will significantly broaden services and product handling capacity at the Ulsan terminal.
The construction of the expansion is planned to start in the first half of 2025. The new tanks are expected to be operational by the second half of 2026.
Norway’s Odfjell Group has reported that the ten carbon steel tanks will be specially designed to store high-demand commodities such as benzene, methanol, aromatics, and ethanol.
A key driver for the E5 is the S-OIL Shaheen project, a $7 billion crude-to-chemical facility being built in close proximity to OTK, according to Odfjell.
The expansion will connect directly to the Shaheen facility via pipeline, enabling exports from Shaheen to global markets via seagoing vessels.
OTK and South Korean oil refining and petrochemical company S-OIL have signed a ten-year firm memorandum of understanding for three tanks (23,990 cbm) to accommodate the Shaheen project.
“This investment decision represents a major milestone for OTK,” said Adrian Lenning, managing director, Odfjell Terminals.
