Samsung Engineering Wins 740 Billion KRW Saudi Petrochemical Plant Contract

Samsung Engineering President Choi Sung-an (far right) is participating in the contract ceremony through an online video system. (Photo by Samsung Engineering)

[Asia Economy Reporter Jeong Hyunjin] Samsung Engineering announced on the 14th that it has secured a large-scale plant project in Saudi Arabia.

Samsung Engineering signed a contract the day before with AGIC, a subsidiary of Saudi petrochemical company APC, for the 'Saudi AGIC PDH (Propane Dehydrogenation) & UTOS (Utility Infrastructure) Project' worth $650 million (approximately 735 billion KRW). The contract ceremony was held in a non-face-to-face written format via an online video system between Seoul and Jubail, Saudi Arabia, attended by Samsung Engineering President Choi Sung-an and APC Chairman Khalifa Abdullatif, among others.

This project involves constructing a PDH plant producing about 840,000 tons of propylene annually and UTOS within the Jubail 2 industrial complex located on the northeastern coast of Saudi Arabia, scheduled for completion in 2024. The PDH plant is a facility that produces propylene by removing hydrogen from propane, and UTOS consists of utility production facilities essential to the plant, such as water, air, and steam production, auxiliary facilities, and water treatment facilities.

Samsung Engineering stated, "The client’s strong trust in our abundant regional and product experience and technological capabilities was significant," adding, "Efforts to improve project efficiency and productivity, such as early deployment of design personnel for FEED (Front-End Engineering Design) verification and plant layout optimization, served as differentiated competitive advantages."

Samsung Engineering previously executed PDH and PP projects ordered by APC in 2008 and expects to gain a favorable position in the competition for future APC projects anticipated to be ordered.

A company official said, "Since we secured a product with extensive experience in our main market, Saudi Arabia, stable execution is expected based on solid technological capabilities," and added, "We will successfully carry out the project, lead follow-up orders, and strengthen our position in the Middle Eastern market."

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