SK Energy to Spin Off Tank Terminal Division... Launching Logistics Specialist Company

by Choi Seoyoon

Published 13 Nov.2023 08:03(KST)

2024 'SK Tank Terminal (tentative)'
100% SK Innovation Subsidiary
"Securing Operational Competitiveness and New Business Opportunities"

SK Energy announced on the 13th that at the board meeting held on the 10th, it resolved to spin off the crude oil operation·and marine shipment organization to establish a new corporation tentatively named ‘SK Tank Terminal’.

The new corporation will be a 100% subsidiary of SK Innovation and is scheduled to officially launch on January 1, 2024, following an extraordinary general meeting of shareholders on the 27th of this month.

This establishment was decided to secure operational competitiveness and new business opportunities through independent decision-making based on expertise. In the long term, the plan is to efficiently respond to the increasing demand for low-carbon products and strengthen competitiveness.

The crude oil operation and marine shipment organization is responsible for storing and shipping crude oil and petrochemical products. It owns storage tanks within SK Ulsan CLX and dock facilities where ships can berth.

SK Tank Terminal (tentative name) plans to enhance profitability by providing storage facilities such as tanks to external customers and expand its business into areas involving the storage and shipment of low-carbon raw materials and products, including Sustainable Aviation Fuel (SAF).

An SK Energy official stated, “Over the past 60 years, we have developed professional operational capabilities and competitiveness by operating tank terminals,” adding, “As an independent corporation, we will establish a structure that enables sustainable growth through swift decision-making based on expertise.”