Samsung E&A, GS E&C win $7.2 bil. deal to build gas plant in Saudi Arabia

Samsung E&A CEO Namkoong Hong, second from left, poses with Wail Al Jaafari, third from right, executive vice president of technical services at Aramco, after signing a contract on the Fadhili Gas Increment Program in Saudi Arabia, Tuesday. Courtesy of Samsung E&A

Samsung E&A and GS E&C won a mega-sized contract worth $7.2 billion (9.6 trillion won) to widen a gas plant in Saudi Arabia, raising hopes for Korean construction firms to clinch more contracts in the Middle East, according to the presidential office, Wednesday.The Samsung affiliate won its largest-ever contract worth $6 billion for the Fadhili Gas Increment Program from Aramco. The project is to expand the capacity of the existing Fadhili Gas Plant, located some 350 kilometers northeast of Saudi Aradia’s capital city of Riyadh. Once the project finishes, the daily gas throughput will rise from the existing 2.5 billion cubic feet to 3.8 billion cubic feet, according to Samsung E&A.The company also plans to utilize its local networks there and continues to build a sustainable partnership with Aramco, the company said. Samsung E&A will also apply its unique execution system — which integrates all of its cutting-edge technologies, such as modularization and automation — to the project until its successful execution, it said.”We are confident to deliver a steady performance on the Fadhili Gas Increment Program with our extensive experience in Saudi Arabia,” Namkoong Hong, Samsung E&A’s president and CEO, said. “We will further gain the trust of clients with our differentiated technology and quality, and further strengthen our position in the Middle East market.”

Aramco also welcomed the latest contract with Korean construction firms.”The award of these contracts reflects Aramco’s goal to increase supplies of natural gas, help efforts to reduce greenhouse gas emissions, and free up more crude oil for value-added refining and export,” Wail Al Jaafari, executive vice president of technical services at Aramco, said.”Together with leading international companies, we are advancing our goal to increase gas production,” the Aramco executive said. “The expansion also supports our ambitions to develop a lower-carbon hydrogen business, while associated liquids from gas are an important feedstock for the petrochemical industry.”GS E&C also won a contract worth $1.22 billion for the Fadhili gas expansion project. The company will be in charge of constructing a sulfur recovery treatment facility there. The construction will be underway for around 41 months, according to the GS affiliate.Korea’s presidential office also spoke highly of the latest achievement, saying it is the third-largest overseas construction contract clinched by local construction firms.The latest order enabled Korea to attain an accumulated foreign construction order worth $12.72 billion between Jan. 1 and April 2, which is more than twofold growth from the previous year, 온라인카지노 according to the presidential office.The government also pledged to offer unwavering support for Korean construction firms to win more orders abroad.

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