Samsung C&T tapped by Qatar for 1.9 trillion won carbon compression facility project

Samsung C&T's engineering and construction division won a 1.91 trillion won contract to build a carbon compression and transport facility in Qatar, the company said Monday.

Samsung C&T's proposed carbon capture project in Qatar [SAMSUNG C&T]

Samsung C&T's engineering and construction division won a 1.91 trillion won ($1.34 billion) contract to build a carbon compression and transport facility in Qatar, the company said Monday.

The project, commissioned by QatarEnergy LNG, will cover the entire engineering, procurement and construction process.

The project will build facilities in the Ras Laffan Industrial City, about 80 kilometers (almost 50 miles) north of Doha, to compress and transport carbon dioxide emitted from liquefied natural gas (LNG) plants by 2030.

The LNG complex at Ras Laffan emits about 4.1 million tons of carbon dioxide (CO2) per year, according to Samsung C&T. The new facility will compress and dehydrate the gas, then transport it through a 20-kilometer underground pipeline to depleted gas fields for permanent storage.

Samsung C&T said the project requires not only compression technology but also sophisticated pressure and temperature control systems to ensure safe CO2 transport.

This marks the firm's latest major energy project in Qatar, following contracts for a 1.85 trillion won LNG terminal in 2021, an 800 billion won solar power project in 2022, a 3.97 trillion won desalination and combined-cycle power plant in 2024 and another 1.46 trillion won solar project in September of this year.

Lee Byung-soo, executive vice president and head of Samsung C&T’s overseas business division, credited the company’s experience in large-scale projects in Qatar for securing the deal.

“We successfully won this project based on our track record in the Qatari market,” he said. “We plan to expand our business beyond renewable energy [such as solar and battery storage systems] to include carbon compression and transport.”

The Samsung logo is seen at Samsung C&T's construction and engineering division office in Seongnam, Gyeonggi, on Oct. 18, 2017. [YONHAP]

With this contract, Samsung C&T’s overseas construction orders this year have reached $5.89 billion, ranking second after Korea Hydro & Nuclear Power, which has logged $19.6 billion in overseas orders so far this year.

Hyundai Engineering & Construction follows with $4.05 billion, Doosan Enerbility with $3.06 billion, Samsung Engineering with $1.9 billion and Daewoo Engineering & Construction with $1.27 billion.

A total of 230 Korean firms won 441 overseas contracts across 97 countries from January to September this year, totaling $41.33 billion, according to the International Contractors Association of Korea.

It is the first time since 2014 that overseas construction orders surpassed $40 billion in the first three quarters, putting the $50 billion annual target within reach.

A spokesperson for the association said Korean builders are diversifying their portfolios amid the domestic real estate slump.

“Given current momentum, the industry is likely to achieve the $50 billion target by the year's end,” the spokesperson said.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom. BY BAEK MIN-JEONG [kim.juyeon2@joongang.co.kr]