Samsung Engineering Secures Additional Contract for Methanol Plant Construction in Malaysia

Notice of Award for $55.5 Million Second Phase Super Project Contract to be Received on the 30th

Samsung Engineering Sarawak Site Location Map.

[Asia Economy Reporter Dongwoo Lee] Samsung Engineering has secured additional work for the Sarawak Methanol Project in Malaysia that it is currently executing.

Samsung Engineering announced on the 31st that it received a letter of award for the 'Sarawak Methanol Project Phase 2 Early Works' from Sarawak Petchem, a Malaysian petrochemical company, the day before.

The scope of work includes partial equipment procurement, design, and early construction, with a contract value of approximately 55.5 million USD (about 66 billion KRW) and a contract period of 11 months. This is seen as a positive signal for the EPC conversion within the year.

The Sarawak Methanol Project involves constructing a methanol production facility with a daily capacity of 5,000 tons in the Bintulu area of Sarawak state, eastern Malaysia.

Samsung Engineering secured the basic design in April last year and the first phase early works in November of the same year. With the recent award of the second phase early works, the cumulative contract amount has increased to approximately 81.1 million USD. This has further raised expectations for the main EPC (Engineering, Procurement, and Construction) conversion, estimated at around 1 billion USD, within the year.

Meanwhile, the company stated that the results of Samsung Engineering’s 'early-stage order strategy' based on technological capabilities are becoming visible. It has been striving to secure EPC projects through basic design over the past few years and is now approaching fruition this year.

In addition to the Sarawak project in Malaysia, the Dos Bocas Refinery Project in Mexico is also progressing from basic design to early construction, with expectations for EPC conversion within the year. Furthermore, in April, Samsung Engineering secured a 5 million USD basic design contract for the 'Malaysia Shell OGP Project' from Sarawak Shell, a subsidiary of the global energy company Shell, and is currently executing it.

A Samsung Engineering official said, “We will continue to expand high-quality orders through our technology-based early-stage order strategy such as basic design,” adding, “We will successfully carry out this early works contract based on differentiated technology, experience, and a solid partnership with the client to ensure there are no setbacks in progressing the main EPC project.”

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