South Korean Companies Secure .2 Billion Gas Plant Contract in Saudi Arabia

South Korean companies, Samsung E&A Co. and GS Engineering & Construction Corp. (GS E&C), have secured a significant deal worth US.2 billion to expand a gas plant in Saudi Arabia. This marks the largest order for South Korean firms in the Middle Eastern country, according to the presidential office.

The project, known as the Fadhili Gas Increment Program, is being undertaken by Saudi Aramco, the state oil giant of Saudi Arabia. It aims to enhance the capacity of an existing gas plant located 80 kilometers from the city of Jubail in the country’s east.

The deal was finalized during President Yoon Suk Yeol’s state visit to Saudi Arabia last October, focusing on enhancing collaboration between the two countries in the construction and infrastructure sectors.

This agreement represents the third-largest overseas construction order received by a South Korean company, following the Barakah nuclear power plant project in the United Arab Emirates worth .1 billion and the Bismayah New City project in Iraq valued at .7 billion.

Samsung E&A announced that it had secured a billion contract to construct two gas treatment facilities as part of the plant expansion initiative. This contract is the largest in the company’s history and the biggest deal ever awarded to South Korean builders by Saudi Arabia.

Upon completion, the project is expected to increase the plant’s daily capacity to 38 million MMSCFD from the current 25 million MMSCFD. Samsung E&A is also actively involved in two other gas treatment and storage facility projects in the region as part of Saudi Arabia’s efforts to bolster gas production.

In a separate statement, GS E&C revealed that it had secured a .22 billion contract to build a sulfur recovery unit at the plant, with an estimated completion time of 41 months. This development signifies a significant milestone for South Korean companies in the lucrative Middle Eastern market.