Hyundai Engineering-Hyundai E&C JV wins $1.7 bn Saudi gas processing project

[Photo provided by Hyundai E&C]

A joint venture between South Korea¡¯s Hyundai Engineering Co. and Hyundai Engineering & Construction Co. (Hyundai E&C) has clinched a 2 trillion won ($1.7 billion) deal from Saudi Aramco to build a large-scale gas processing facility, the company said Tuesday.

The Saudi Arabia Jafurah Gas Processing Facilities Project involves building a facility that processes gas produced from Jafurah field and sulfur recovery unit. The joint venture will be responsible for a package of sulfur recovery units and utility and offsite facilities.

Hyundai Engineering owns 55 percent of the joint venture and Hyundai E&C remaining 45 percent.

The latest feat is based on Hyundai¡¯s longstanding presence in the Middle East infrastructure market.

The two have been acknowledged by the world¡¯s biggest energy and chemical company Saudi Aramco for their outstanding technical skills and project management capacity over other global candidates.

In 2016, the two Korean companies won a $2.9 billion deal from Kuwait Integrated Petroleum Industries to build a liquefied natural gas (LNG) import terminal in Kuwait. They also won a contract for mega-size Karbala Refinery Plant Project in Iraq.

Hyundai Engineering, meanwhile, has been putting out efforts to win engineering, procurement, and construction (EPC) orders based on project processing experience and technology competitiveness in Front End Engineering Design (FEED) sector.

In 2019, the company won a deal to build the Polimery Police integrated chemical complex in Poland. In May, it also received a 2.7 trillion won order for Poland PKN Olefins Expansion Project.

Hyundai E&C has established close ties with Aramco after successfully carrying out two projects in 2012 and 2019. Hyundai E&C completed a $1.4 billion Karan Gas Facilities Package in 2012 and $800 million Uthmaniyah Gas Processing Project in 2019. It is also engaged in $2.7 billion project to build an oil and gas refining complex in Marjan in Saudi Arabia. The company is also involved in 10 other projects worth $3.4 billion.

Shares of Hyundai E&C closed Tuesday 3.07 percent lower at 44,200 won.

[¨Ï Maeil Business Newspaper & mk.co.kr, All rights reserved]