18 Sept 2026
SK Enmove President Kim Won-gi said there is currently no clear indication of when the ongoing shortage of base oils will ease, according to The Korea Herald.
SK Enmove President Kim Won-gi said there is currently no clear indication of when the ongoing shortage of base oils will ease, according to The Korea Herald.
Speaking to reporters in Ulsan, South Korea, during the World Advanced Vision Exhibition 2026 (WAVE 2026) at the Ulsan Exhibition and Convention Center, Kim attributed the supply constraints to external factors, including geopolitical developments and the ongoing conflict in the Middle East.
The global lubricants market has faced increasing supply pressure as production disruptions at companies in the Middle East have pushed base oil prices significantly higher, The Korea Herald reported.
The challenging supply environment has nevertheless supported SK Enmove’s financial performance. The company reported an operating profit of KRW 691.9 billion (USD 505.3 million) in the second quarter, an increase of KRW 504.3 billion (USD 368.3 million) from the first quarter. If the base oil shortage continues, the company could maintain strong earnings momentum into the third quarter.
Kim also highlighted immersion cooling as an important future growth opportunity for SK Enmove. He said the technology is expected to expand beyond data centres into applications such as energy storage systems (ESS).
According to Kim, while current market conditions remain challenging, immersion cooling fluids are likely to see broader adoption across data centres and ESS as market conditions and technological requirements evolve. SK Enmove is currently conducting immersion cooling pilot projects with several companies.
Immersion cooling is a thermal management technology in which electronic components are submerged in a non-conductive fluid to dissipate heat. The fluids used in these systems are typically based on specialised base oils. Compared with conventional air-cooling systems, immersion cooling can offer improved energy efficiency and lower operating costs.
SK Enmove entered the immersion cooling market in 2022 by acquiring an equity stake in U.S.-based immersion cooling specialist GRC, becoming the first South Korean refiner to enter the segment.
In 2024, SK Enmove signed a memorandum of understanding (MoU) with SK Telecom and UK-based liquid cooling specialist Iceotope to collaborate on next-generation cooling technologies and solutions. More recently, the company has also been developing and piloting immersion cooling solutions in collaboration with LG Electronics and GRC. The detailed article is published by https://www.fuelsandlubes.com/ can be accessed from https://www.fuelsandlubes.com/sk-enmove-sees-no-clear-end-to-base-oil-supply-shortage/
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