Photo: Collected
South Korean engineering company Samsung E&A and Korea-based global EPC contractor GS Engineering & Construction have signed $7.2 billion contract to expand the capacity of a gas plant in Saudi Arabia, the largest contract for South Korean companies in the Middle Eastern country, the presidential office said on Wednesday (3 April).
Through the Fadhili Gas Increment Program, Saudi Arabian state oil firm Saudi Aramco hopes to expand the capacity of a gas plant at an oil field near the city of Al Jubail.
The deal is part of an agreement to boost construction cooperation between South Korea and Saudi Arabia made during South Korean President Yoon Suk-yeol's visit to Saudi Arabia in October 2023.
Samsung E&A announced the signing of a $6 billion deal to build two gas processing plants as part of the plant's expansion program. It is the largest deal the South Korean construction company has ever signed with the Middle Eastern country, as well as the largest in the company's history. Upon completion, the project will increase the plant's daily capacity from the current 25 million cubic feet per day to 38 million in the future.
GS Engineering & Construction said it had reached an agreement to develop a sulfur recovery unit at the facility for $1.22 billion. The project is expected to be completed in approximately 41 months.
In June 2023, South Korea's Hyundai Engineering & Construction Co. and Saudi Aramco signed a $5 billion agreement to build a large petrochemical complex in Saudi Arabia. South Korea is reportedly on track to meet its 2024 target of $40 billion in overseas construction contracts.
Messenger/Mumu
