SK Energy to spin off tank terminal business as new logistics firm

Korea’s energy and telecom conglomerate SK Group
Korea’s energy and telecom conglomerate SK Group

SK Energy Co., a unit of South Korean oil refiner and battery maker SK Innovation Co., is spinning off its crude oil storage and shipment business to launch an independent oil storage and logistics company.

SK Energy, Korea’s largest oil refiner, said on Monday it approved the spin-off plan at a board meeting last Friday.

The new entity, tentatively named SK Tank Terminal Co., will officially launch on Jan. 1 after approval at its extraordinary shareholders’ meeting later this month.

SK Tank Terminal will be wholly owned by SK Innovation.

SK Energy logo
SK Energy logo

The SK Energy business has been handling the storage and shipments of crude oil and petrochemical products within the company. It also operates storage tanks at SK Energy’s complex in Ulsan and dock facilities near the port city.


SK Energy said it is spinning off the business to secure operational competitiveness and seek new business opportunities through independent decision-making at the new entity.

Over the long term, the separation will help SK Energy efficiently respond to increasing demand for low-carbon products, it said.

SK Energy's Ulsan complex
SK Energy’s Ulsan complex

SK Tank Terminal, the new company, will expand its business scope so that it will also store and ship low-carbon raw materials and products, including sustainable aviation fuel (SAF), and lease storage facilities to its customers to enhance profitability, according to SK Energy.

“We have expertise in tank terminal operations that we have accumulated over the past 60 years. The proposed restructuring will allow us to pursue sustainable growth through fast decision-making based on expertise as an independent corporation,” said an SK Energy official.

Write to Mi-Sun Kang at [email protected]

In-Soo Nam edited this article.

Next Post

Give Your Kitchen Layers with This Eclectic Interior Design Style

Sat Dec 9 , 2023
Take your kitchen decor to the next level by layering colors, textures, and personal touches. There’s something about layers that makes everything better: Pasta with marinara sauce is a classic, but lasagna stacked with meat, cheese, and noodles really brings the flavor. A sheet cake is charming and easy to […]
Give Your Kitchen Layers with This Eclectic Interior Design Style

You May Like