Hyundai Engineering Wins Basic Design Contract for Indonesia's Largest Petrochemical Complex

Securing a Total of 4.5 Trillion KRW EPC Project through Basic Design Orders
Winning Global Competition as Consortium Leader...Proving World-Class Technological Competitiveness
Following Indonesia's 'Balikpapan Refinery', Additional Mega Refinery Project Secured

Location map of TPPI Olefin Petrochemical Complex. / Provided by Hyundai Engineering.

[Asia Economy Reporter Kangwook Cho] Hyundai Engineering has won the basic design service contract for the largest petrochemical complex project in Indonesia.

The Hyundai Engineering consortium announced on the 21st that, together with the French Technip consortium, it was selected by Indonesia's state-owned oil company Pertamina as the successful bidder for the EPC (Engineering, Procurement, and Construction) linked dual basic design service (FEED) for the 'TPPI Olefin Complex Project.'

This project involves constructing a large-scale petrochemical complex that produces 700,000 tons per year of high-density polyethylene and linear low-density polyethylene, 300,000 tons per year of low-density polyethylene, and 800,000 tons per year of polypropylene through a naphtha cracker (NCC) with an annual capacity of 1 million tons. It is the largest petrochemical plant project in Indonesia's history, with a total construction cost of approximately 4 billion USD (about 4.5 trillion KRW).

The basic design service contract won this time will be linked to the EPC project to be carried out later. Accordingly, the Hyundai Engineering consortium is evaluated to have secured a favorable position for winning the EPC project scheduled to be ordered next year through performing the basic design.

This project is being promoted as a national strategic project (PSN) designated by the Indonesian government. Indonesian President Joko Widodo visited the planned construction site at the end of 2019 and expressed a strong determination to push forward with this project to achieve energy self-sufficiency.

A Hyundai Engineering official said, "We are smoothly progressing with the Balikpapan Refinery Project, the largest single project in Indonesia's history ordered by Pertamina in 2019," adding, "We have proven our status as a global top-tier engineering company by securing an additional contract in this project, which is also led by the same client."

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