Hyundai Engineering and Others 'Team Korea' Complete World's Largest Kuwait LNG Import Terminal

Team Korea Collaboration Achievements Comprising Hyundai Engineering, Hyundai Construction, and Korea Gas Corporation
World's Largest LNG Terminal 'Kuwait Al-Zour LNG Import Terminal Project'
Hyundai Engineering Demonstrates Capability as Consortium Leader in Mega EPC Project
Additional Orders Expected in Expanding LNG Plant Market Highlighted as Eco-Friendly Energy

View of Al-Zour LNG Import Terminal in Kuwait / Provided by Hyundai Engineering.

[Asia Economy Reporter Jo Gang-wook] The Team Korea consortium, consisting of Hyundai Engineering, Hyundai Construction, and Korea Gas Corporation, has successfully completed the world’s largest single-contract LNG terminal project, the ‘Kuwait Al-Zour LNG Import Terminal Project.’

According to Hyundai Engineering on the 17th, since the initial LNG carrier carrying 210,000㎥ of LNG arrived at the offshore berth and began unloading on July 21, the gas regasification facility and LNG storage tanks have completed commissioning perfectly, marking the official start of commercial operations for LNG import and supply through Kuwait’s onshore LNG terminal. With the completion of this project, Kuwait has established a foundation to diversify its energy sources, respond to clean energy demand, and operate its gas network stably and long-term amid rapidly increasing domestic energy demand.

The ‘Kuwait Al-Zour LNG Import Terminal Project’ was jointly awarded in March 2016 to the Korea Dream Team consortium formed by Hyundai Engineering (consortium leader), Hyundai Construction, and Korea Gas Corporation by the client, Kuwait Integrated Petroleum Industries Company (KIPIC). This project, worth a total of $2.932 billion (approximately 3.6 trillion KRW), involves constructing a regasification facility capable of processing 130,000㎥ of gas per day and eight LNG storage tanks with a total capacity of 225,000㎥ in the Al-Zour area, located 90 km south of Kuwait City, the capital of Kuwait.

Hyundai Engineering was responsible for the onshore works including the regasification plant, the upper structure of the offshore berth, and LNG sending facilities, while Hyundai Construction carried out the construction of eight large LNG storage tanks, reclamation, and the lower structure of the berth facilities. Korea Gas Corporation handled commissioning and LNG terminal operation training.

Hyundai Engineering Provides Total Solutions as Consortium Leader

Hyundai Engineering was responsible not only for the design, procurement, and construction of the core plant facilities but also, as the consortium leader, for overall project management including design management, schedule control, permits, and client relations. By ensuring smooth construction progress and effective client communication, the company successfully completed this mega project, reaffirming its world-class plant construction capabilities.

Since the project site was secured by reclaiming coastal waters, numerous processes were complexly intertwined and conducted simultaneously in a relatively confined space. As the overall project commander, Hyundai Engineering minimized construction interference among consortium companies by analyzing potential interference factors during the early construction stages and establishing and managing an integrated schedule considering each company’s milestones, ensuring smooth progress.

In particular, Hyundai Engineering actively responded to client requirements and swiftly devised solutions, facilitating smooth coordination with the client and laying the foundation for rapid project progress. This demonstrated the company’s seasoned response capabilities based on extensive overseas project experience.

This project synergized Hyundai Engineering’s plant project management and design/construction technology with Hyundai Construction’s expertise and track record in marine reclamation and simultaneous construction of eight LNG tanks. Additionally, Korea Gas Corporation’s LNG terminal operation capabilities contributed, making this an exemplary cooperation case between private and public enterprises.

Significant Reduction in Construction Period through Modular Construction Method

Hyundai Engineering actively introduced advanced construction methods to shorten the construction period. In this project, timely completion of the upper structures of the 1.2 km offshore berth was a critical success factor. Typically, offshore construction schedules are heavily affected by weather variables.

To overcome these variables, Hyundai Engineering applied the modular construction method to the upper structures and piping works of the offshore berth. The company fully utilized its accumulated modular design technology, considering transportation and installation of plant modules. The modular method involved fabricating the offshore upper structures as 12 modules onshore, transporting them to the site, and installing and connecting them using offshore cranes. This resulted in a groundbreaking reduction of over six months in the construction period.

Meanwhile, despite challenges such as Kuwait’s entry restrictions, curfews, and lockdowns due to the ongoing COVID-19 pandemic since last year, the three companies collaborated closely, mobilizing charter flights and introducing COVID-19 test kits to minimize the pandemic’s impact. With the cooperation of the Kuwaiti government, local vaccinations for employees were conducted, enabling the successful completion of the project despite unforeseen difficulties.

Gaining Trust from Client KIPIC through Excellent Project Execution and Effective Crisis Response

A KIPIC official stated, "This project holds great significance as the start of Kuwait’s long-term strategy to reduce diesel consumption and produce electricity using natural gas," adding, "Hyundai Engineering demonstrated excellent engineering technology and outstanding project execution capabilities during the five-year project period." The official continued, "Despite the COVID-19 pandemic, the Hyundai and Gas Corporation consortium made every effort to effectively minimize the impact on the project, enabling its successful completion."

A Hyundai Engineering representative said, "Through the successful execution of this project, we have proven our world-class LNG plant execution capabilities and technical expertise," adding, "As LNG is gaining attention as an eco-friendly energy source and the LNG market continues to expand, we plan to use this project as a foothold to increase participation in upcoming LNG projects."

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