SK E&C and Samsung Engineering Wins $2.5 bn Gas Plant Order from Saudi Arabia
SK Engineering & Construction (SK E&C) and Samsung Engineering won the $2.5 billion (approximately 2.8 trillion won) order from Saudi Arabia for the Wasit gas plant.
The project was commissioned by Aramco, a state-owned oil company by Saudi Arabia, and consists of four categories. SK E&C was commissioned for three out of the four categories - construction of a double-layered gas treatment facility, sulfur and other utilities facility, and a natural gas liquid separating facility - for $1.9 billion each. Samsung Engineering is responsible for the construction of a power generation system worth $600 million.
The Wasit gas plant is located 50 km north to Jubail, the largest industrial city in Saudi Arabia. Once the construction is completed, the facility is expected to treat a daily average of 70 million m3 of natural gas.
This is a turn-key project, which includes an EPC (engineering, procurement, and construction) contract. The project will take 38 months and will be completed by 2014.
SK E&C had first entered the Saudi Arabian market in 2009, when it obtained a $500 million order for an oil plant in Jubail. It earned further contracts last year by winning the $300 million residential complex project for the King Abdullah Petroleum Studies & Research Center and the $600 million Yanbu refinery project.