Samsung, GS win record gas plant deals in Saudi Arabia

Apr 04, 2024, 10:13 am

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President Yoon Suk-yeol, first lady Kim Keon-hee, and Saudi Arabia’s Prince Mohammad bin Salman walk toward the summit venue at Al Yamamah Palace in Saudi Arabia during his state visit on Oct. 22, 2023./ Source: Yonhap News

AsiaToday reporter Hong Sun-mi

Samsung E&A Co. and GS Engineering & Construction Corp. (GS E&C) have won a contract worth a combined total of $7.2 billion for the construction of a substantial gas plant in Saudi Arabia. The presidential office said Wednesday the landmark deal is the result of S. Korea-Saudi summit diplomacy.

“The Fadhili Gas Increment Program is a project worth $7.2 billion, the largest-ever deal that South Korean companies have obtained from the Middle Eastern country beyond the $5 billion Amiral project awarded in June last year,” the presidential office said.

“The deal is the result of summit diplomacy where President Yoon Suk-yeol and Saudi Crown Prince and Prime Minister Mohammed agreed to strengthen cooperation in the construction and infrastructure sector during Yoon’s state visit to Saudi Arabia in October last year, following the agreement in November 2022 to advance their bilateral relations into a future-oriented strategic partnership and promote large-scale economic cooperation in infrastructure,” the presidential office said.

The deal is the third-largest overseas construction order won by a South Korean firm, after the $19.1 billion Barakah nuclear power plant project in the United Arab Emirates and the $7.7 billion Bismayah New City project in Iraq.

Samsung alone has won orders worth some $6 billion that involve the construction of a gas processing facility package and a utilities and auxiliary facility package while GS will be responsible for building a sulfur recovery treatment facility worth about $1.2 billion.

The project is run by Saudi Arabia’s state oil giant, Saudi Aramco.

The deal has boosted South Korea’s total overseas construction orders for the year to $12.7 billion, doubling the $6.1 billion from the same period last year. Analysts are optimistic about achieving this year’s $40 billion order target.

The official stressed the government’s commitment to supporting various global projects, including petrochemical facilities, railway systems, and desalination projects.

#Samsung #GS #Aramco #Saudi Arabia