Samsung ENG Wins Basic Design Contract for Gas Plant Worth 6 Billion KRW in Malaysia
[Asia Economy Reporter Ki-min Lee] Samsung Engineering has secured a basic design contract for a gas plant in Malaysia.
Samsung Engineering announced on the 16th that it recently received a Letter of Award (LOA) for the Front-End Engineering Design (FEED) of the "Malaysia Shell OGP Project" from Sarawak Shell, a subsidiary of the global energy company Shell. The contract value is approximately 5 million USD (about 6 billion KRW).
The plant, to be constructed in the Bintulu area of Sarawak state in eastern Malaysia, will process 800 million standard cubic feet of gas per day. The gas extracted from deepwater gas fields will have impurities such as sulfur removed at this plant before being sent to a nearby LNG liquefaction facility currently in operation to be used as raw material. Samsung Engineering will carry out the preliminary design and EPC (Engineering, Procurement, and Construction) budget estimation for this project over 11 months.
With this contract, Samsung Engineering has secured Shell, known as an oil major, as a new client, accelerating its expansion into the global oil company market, which has been mainly occupied by global companies from Europe and Japan.
The FEED contract Samsung Engineering won this time is a field requiring high technical expertise. It is known that companies performing FEED at the early stage of a project gain advantageous positions in the subsequent EPC business linkage process. Samsung Engineering has performed FEED for projects in Sarawak, Malaysia; Dos Bocas, Mexico; and PTTDLM, USA, and is preparing to transition to EPC this year.
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A company official stated, "With abundant project experience and excellent design capabilities, we are achieving remarkable results in the high value-added FEED sector. We will also successfully carry out this project to gain the trust of the client and secure follow-up EPC contracts."
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