SK Energy announced the board of directors’ resolution to separate the crude oil operation and maritime shipping divisions, and create a new entity, tentatively named “SK Tank Terminal.”

This forthcoming corporation will function as a wholly-owned subsidiary of SK Innovation and is set to officially launch on January 1, 2024, following the general meeting of shareholders on November 27.

The decision to establish this new entity stems from the aim to bolster operational competitiveness and capitalize on new business opportunities through autonomous decision-making grounded in industry expertise. Over the long term, the strategic plan is to enhance competitiveness by effectively responding to the growing demand for low-carbon products.

The crude oil operation and maritime shipping organization is responsible for storing and shipping crude oil and petrochemical products, and subsequently SK Ulsan CLX has storage tanks and dock facilities where ships can dock. With the emergence of SK Tank Terminal (tentative name), the strategic focus is to enhance profitability by extending storage services, such as providing tanks to external clients, and to diversify storage and transportation of low-carbon raw materials and products, such as sustainable aviation fuel (SAF).

A representative from SK Energy emphasized, “The Company’s six-decade-long experience in operating tank terminals, highlights the development of professional capabilities and competitiveness. The formation of SK Tank Terminal as an independent corporation aims to establish a framework conducive to sustainable growth, facilitated by swift decision-making based on industry expertise.”