Daewoo E&C Wins 5 Trillion KRW Order for Nigeria LNG Plant (Comprehensive)

[Asia Economy Reporter Yoo In-ho] Daewoo E&C has secured a mega plant project worth 5 trillion KRW in Africa.

This large-scale overseas project came at a time when the construction industry is struggling with overseas order sales due to the novel coronavirus disease (COVID-19), and it is noteworthy because the contract was won as the main contractor rather than in a subcontracting form.

Daewoo E&C announced on the 14th that it signed the main EPC (Engineering, Procurement, and Construction) contract for the 'Train 7' project, a liquefied natural gas (LNG) plant in Nigeria, on the 13th.

This project involves building an LNG production facility with an annual capacity of 8 million tons on Bonny Island, Delta State, located in the Gulf of Guinea in southern Nigeria, with a total project cost of approximately 5.1811 trillion KRW. Daewoo E&C submitted a letter of intent to bid to the client, Nigeria LNG, in September last year.

The company explained that this project was won as the main contractor, not in a subcontracting form. Until now, overseas EPC projects had been secured in subcontracting forms, and this is the first time participating as the main contractor. Daewoo E&C formed a joint venture with Italy's Saipem and Japan's Chiyoda to carry out the work, with Daewoo E&C holding a 40% stake worth 2.0669 trillion KRW. The construction period is 66 months after groundbreaking.

This order is analyzed to be based on Daewoo E&C's successful track record of construction projects in Nigeria. Since first entering Nigeria in 1978, Daewoo E&C has successfully completed over 70 projects, holding the largest record among domestic construction companies.

The Train 7 project is also understood to be a result of the company’s recognized technical skills, having secured and completed all LNG Train 1 to 6 projects on Bonny Island from 1997 to 2004.

A Daewoo E&C official said, "This order is significant in that it is the first time a domestic construction company has secured the status of main contractor in the LNG liquefaction plant construction market."

This content was produced with the assistance of AI translation services.