Daewoo and SK Construction Win 320 Billion KRW Contract for 'Ulsan Bukhang LNG Plant Construction'

[Asia Economy Reporter Yoo In-ho] Daewoo E&C and SK Engineering & Construction have secured a contract worth 320 billion KRW for the Ulsan North Port Liquefied Natural Gas (LNG) package construction project.

Daewoo E&C announced on the 29th that it signed the contract for the "Ulsan North Port Petroleum Products and Liquefied Gas Terminal Phase 1 LNG Package Construction Project," commissioned by Korea Energy Terminal Co., Ltd., on the 26th.

This project involves constructing auxiliary facilities including one LNG tank with a capacity of 215,000㎘ and vaporization and sending equipment with an annual capacity of approximately 1 million tons within Ulsan North Port. Daewoo E&C formed a joint venture with SK Engineering & Construction to jointly perform all tasks as the primary contractor, including design, procurement, construction, and commissioning. The construction cost is approximately 324.3 billion KRW, with Daewoo E&C holding a 51% stake and SK Engineering & Construction 49%. The construction period is from July this year to June 2024.

Leading domestic large construction companies participated in this bid, fiercely competing through the FEED (Front-End Engineering Design) verification, technical bid evaluation, and price bid evaluation processes. It is known that the abundant experience in performing similar projects and the suitability of the execution plan held by Daewoo E&C and SK Engineering & Construction were strong advantages in winning the contract.

Daewoo E&C has a track record of constructing 22 LNG storage units at production bases operated by Korea Gas Corporation in Incheon, Tongyeong, Pyeongtaek, and Samcheok. Overseas, it has successfully built two LNG storage facilities in Yemen, and is recognized as a construction company with the best technology and construction experience in LNG plant construction both domestically and internationally.

SK Engineering & Construction, which possesses excellent EPC (Engineering, Procurement, and Construction) capabilities in the LNG plant sector, has been successfully carrying out the Boryeong LNG Terminal project from design to procurement, construction, and commissioning. Units 1 to 4 of the Boryeong LNG Terminal are currently in commercial operation, and units 5 and 6 are under additional construction.

Daewoo E&C and SK Engineering & Construction have secured the status of preferred negotiators for the oil package construction project, which consists of separate petroleum product storage facilities within the site, indicating a high possibility of additional orders.

A Daewoo E&C official said, "This project, won under difficult conditions such as COVID-19 and falling oil prices, demonstrates that Daewoo E&C has established a friendly cooperative relationship with clients in the LNG plant sector," adding, "It is the result of recognition of our excellent technology and experience accumulated over a long period."

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