March 03, 2026 [Pipeline Technology Journal]- SK Innovation is reportedly seeking to divest its controlling stake in the Korea Pipeline Corp. (DOPCO), marking a significant shift in SK Group’s broader strategy to rebalance its industrial portfolio.

The South Korean energy giant currently holds a 41% stake in the pipeline operator. While SK Innovation has declined to confirm the move, industry sources estimate the sale price at approximately 400 billion won ($295 million).

Potential suitors, including IMM Investment and KB Balhae Infrastructure Investment, have already begun circuiting as interested parties.

Established in 1990 and privatized in 2001, DOPCO serves as the backbone of South Korea’s energy distribution.

The company manages 1,116 kilometers of underground pipelines, transporting roughly 58% of the nation’s gasoline, diesel, and jet fuel to major metropolitan hubs and airports.

The infrastructure is prized for its stability and efficiency, operating independently of weather or traffic conditions. Additionally, the company maintains 12 storage facilities with a total capacity of 5.22 million barrels.

DOPCO has remained a consistent “cash cow” for its shareholders, which include GS Caltex and the Ministry of Trade, Industry, and Energy.

Despite its financial health, the company has faced scrutiny over safety. A 2018 storage tank explosion in Goyang and a recent fire at the Yeongnam branch have highlighted the persistent risks associated with high-volume fuel storage.

Analysts warn that a sale may be complicated by DOPCO’s unique governance structure. Major decisions are overseen by a Pipeline Operation Council involving the government and other refiners, limiting a buyer’s ability to exercise unilateral control.

“Opposition from the government and existing shareholders to private equity management is virtually certain,” an industry official noted, citing concerns that new owners might prioritize short-term exits over long-term infrastructure stability.