Two leading South Korean construction companies have landed a pivotal $7.2 billion contract to build a significant gas facility in Saudi Arabia. This project marks a major milestone as the largest construction contract Korean firms have obtained in the kingdom.
Samsung E&A along with GS Engineering & Construction have inked a deal for engineering, procurement, and construction with Aramco, the national oil company of Saudi Arabia. The ceremonial signing took place in Dhahran, Saudi Arabia, on a Tuesday.
The ambitious initiative will see the expansion of an existing gas plant, which is located approximately 350 kilometers away from Riyadh, the capital. The goal is to complete the expansion by November 2027, thereby significantly boosting the plant’s capacity.
Samsung is set to take on the task of constructing both the gas processing facility and associated utilities, with its orders valued around $6 billion. On the other hand, GS is tasked with creating a sulfur recovery unit estimated at $1.2 billion.
Once operational, the plant’s daily gas production is expected to surge, going from 71 million cubic meters to a robust 108 million cubic meters.
The contract solidifies Samsung E&A’s presence in the Saudi gas sector, complementing its current projects, such as the Jafurah gas processing and Unayzah gas storage projects.
An official from Samsung E&A attributed their success in securing the contract to the company’s proven track record with Aramco, highlighting their innovative performance in past collaborations.
Meanwhile, GS E&C aims to implement a sulfur recovery process at their facility that not only improves the gas’s quality but also mitigates environmental pollution.
GS E&C is responsible for constructing three sulfur recovery units, each with a capacity to process 800 metric tons of sulfur daily.
An official from GS E&C expressed confidence in their ability to execute the project successfully, drawing on their extensive experience from numerous international projects over the past fifty years.
Despite recent challenges in the international plant construction market due to fluctuating oil prices, these companies are looking to rejuvenate their overseas portfolios with such significant contracts.
In parallel, Saudi Arabia is aggressively expanding its gas industry, investing in unconventional gas reserves and adopting advanced extraction technologies to cater to the growing need for cost-effective energy solutions, as per industry reports.