South Korea’s Hyundai Engineering & Construction has won a contract worth $5 billion for the planned Amiral petrochemicals complex that the Saudi Arabian Oil Co. is building in partnership with TotalEnergies in Jubail.
Hyundai E&C has received the engineering, procurement and construction contract for a mixed feed cracker and utility system with an installed capacity of 1,650 kilotons per annum of ethylene and related industrial gases.
According to a press release, the scope of work involves building utilities, flares and interconnecting systems that support the facilities.
The deal is part of the EPC contracts for the $11 billion Amiral project that the energy giants plan to build at the Saudi Aramco Total Refining and Petrochemical Co.’s refinery in the Kingdom’s east coast.
South Korean Land Minister Won Hee-ryong, who attended the contract signing ceremony in Saudi Arabia, said the deal would expand energy cooperation between both countries.
The construction work for the project is scheduled to begin in 2023, with commercial operation planned for 2027.
The minister noted that this is the largest order a South Korean firm has won for plant construction in the Kingdom.
South Korean President Yoon Suk Yeol also lauded the Amiral project and said it would help strengthen the bilateral relationship, Yonhap News Agency reported, citing presidential spokesperson Lee Do-woon.
Earlier in March, Saudi Aramco inked a deal with Hyundai E&C to develop the $7 billion Shaheen project in the South Korean city of Ulsan.
According to the agreement, Hyundai E&C is the project lead of the Shaheen project and will work along with its key subsidiary Hyundai Engineering, Lotte E&C and DL E&C on the construction.
“Shaheen is among Aramco’s biggest international downstream investments, representing a significant and sizeable step forward in our liquids-to-chemicals expansion and another major milestone in further strengthening our presence in Korea,” said Saudi Aramco CEO Amin Nasser in March.
The two nations further strengthened their partnership when Saudi Minister of Municipal, Rural Affairs and Housing Majid Al-Hogail met South Korea’s Hee-ryong in Riyadh on June 22 to cooperate on smart city planning and housing.
The ministers also discussed the business opportunities available for South Korea in the Cityscape Global exhibition in Riyadh from Sept. 10-13.