Samsung E&A has secured a construction contract worth US$7.4 billion to expand an Aramco gas plant in Saudi Arabia. The project involves the construction of a gas processing facility and related infrastructure as part of the expansion project for the Fadhili gas plant in Saudi Arabia. The project was commissioned by Saudi Arabia’s state-owned oil company Aramco, valued at $6.07 billion. Additionally, this contract is the third-largest project in the history of Korean overseas construction. Korea is a large construction contractor exporter and has kept such records since 1965.
The Fadhili gas plant
The Fadhili gas plant is located in the Jubail Industrial Park approximately 350 kilometers northeast of Riyadh, the capital of Saudi Arabia. It refines natural gas extracted from offshore fields. The refined natural gas is then distributed to industrial sites and residential areas. In response to the increasing demand for gas, the Saudi government has initiated an expansion project to boost the plant’s processing capacity from 70 million cubic meters to 170 million cubic meters per day.
“We are confident to deliver a steady performance on the Fadhili Gas Increment Program with our extensive experience in Saudi Arabia. We will further gain the trust of clients with our differentiated technology and quality, and further strengthen our position in the Middle East market,” Hong Namkoong, the President and CEO of Samsung E&A said in the statement.
The Full Scale of the Project
It has also been revealed that GS E&C, another South Korean construction engineering company, has obtained a contract to enhance the sulfur recovery unit at the Fadhili gas plant, with the order valued at $1.12 billion (1.6 trillion won). Further, the combined total of the contracts awarded to both companies reach $7.29 billion (9.8 trillion won). This follows the Barakah Nuclear Power Plant project in the United Arab Emirates (UAE) in 2009, valued at $19.1 billion. Also, the Bismayah New City project in Iraq in 2012, at $7.7 billion.
Aramco plans for the expansion by November 2027. Samsung E&S and GS E&C will cover 94.7% of the project expenses. Moreover, the $200 million civil works tender received no bids from local companies and was awarded to the Saudi firm Nesma & Partners.
Other Samsung gas projects in Saudi Arabia
Further solidifying its position in Saudi Arabia’s gas sector, this contract win follows the Jafurah Gas Treatment Project received in 2021. These projects are pivotal in Saudi Arabia’s Vision 2030, aimed at enhancing gas production and distribution capacity to reduce reliance on oil. Also, meeting escalating electricity demands driven by industrial and population growth. Samsung E&S is currently working on the Jafurah Gas Processing and Unayzah Gas Reservoir Storage Projects in Saudi Arabia.
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