Daewoo E&C Wins 500 Billion KRW Contract for 'Mozambique LNG Area 1' Project

[Asia Economy Reporter Inho Yoo] Daewoo E&C announced on the 22nd that it has signed a contract worth 500 billion KRW (4.5564 billion USD) for the Africa Mozambique ‘LNG Area 1’ construction project.

The Mozambique LNG Area 1 project involves the construction of two LNG liquefaction Trains with an annual capacity of 6,400 tons and associated facilities at the ‘Afungi Industrial Complex’ in Palma, the northernmost region of Mozambique.

Daewoo E&C will carry out core construction processes including steel structure, machinery, piping, and electrical instrumentation. The project owners include seven companies such as the global oil company France Total and Mozambique’s state-owned gas corporation. The construction period is 33 months.

Mozambique, located in southeastern Africa, borders five countries including South Africa and Zimbabwe, and is 3.6 times the size of the Korean Peninsula. It possesses the largest Rovuma gas field discovered in the 21st century and ranks ninth worldwide in abundant coal reserves.

The World Bank expects Mozambique to generate enormous economic ripple effects through full-scale natural gas development in the future, anticipating additional orders for multiple LNG liquefaction plant Trains, gas power plants, petrochemical plants, and fertilizer factories.

Accordingly, Daewoo E&C has gained an advantage to secure and expand its position in the regional plant market by actively utilizing its abundant construction experience and technological capabilities, using the Mozambique LNG Area 1 project as a foothold.

Furthermore, Daewoo E&C has selected the LNG business sector as one of its new growth engines and is accelerating orders through tailored sales strategies for key countries including Mozambique, Nigeria, Qatar, Indonesia, Russia, and Papua New Guinea.

In fact, Daewoo E&C won the Indonesia Tangguh LNG Expansion Ph2 project in April this year. Then, in May, it became the first domestic construction company to secure the prime contractor position in the LNG liquefaction plant market by consecutively winning the Nigeria LNG Train 7 project.

Thanks to these achievements, Daewoo E&C showed remarkable results in overseas orders despite the adverse conditions caused by the COVID-19 pandemic this year. It recorded over 3 trillion KRW in orders, including the 2 trillion KRW Nigeria LNG Train 7 project, and continued to secure orders in Vietnam, Singapore, Hong Kong, and other regions.

Currently, final negotiations are underway for the Iraq Al Faw New Port project. If Daewoo E&C wins the Iraq Al Faw New Port project, it is expected to exceed its overseas order target for this year.

A Daewoo E&C official said, “Through this year’s high-profit, high-quality overseas project orders, we expect a full-scale sales turnaround and improvement in business performance starting next year.”

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