Samsung Engineering Wins Basic Design Contract for Indonesia's Largest Petrochemical Plant

"Challenge to Secure Main Project Orders Following Successful FEED Execution"

[Asia Economy Reporter Lee Hyeyoung] Samsung Engineering has secured the front-end engineering design (FEED) contract for Indonesia's largest petrochemical plant.

Samsung Engineering announced on the 15th that it has signed a contract for the FEED work of the "Indonesia TPPI Olefin Complex Project." The client is PT KPI, a subsidiary of Indonesia's state-owned oil company Pertamina, and Samsung Engineering will carry out the project jointly with Technip and the local Indonesian company Tripatra.

This project, taking place in the Tuban area of Java Island, Indonesia, involves constructing a large-scale petrochemical complex. It is expected to produce 700,000 tons per year of high-density polyethylene (HDPE) and linear low-density polyethylene (LLDPE), 300,000 tons per year of low-density polyethylene (LDPE), and 600,000 tons per year of polypropylene (PP) through a naphtha cracker (NCC) with an annual capacity of 1 million tons.

Samsung Engineering announced on the 15th that it has won the FEED (Front-End Engineering Design) contract for a petrochemical plant project in the Tuban area of Java Island, Indonesia. The photo shows the site location map. (Photo by Samsung Engineering)

The project is scheduled to transition to the EPC (engineering, procurement, and construction) main project next year after the completion of the basic design. The total EPC scale is known to be about 4 billion dollars, making it the largest petrochemical plant project in Indonesia.

Samsung Engineering will perform the basic design and EPC budget estimation for this project. Through this, the company plans to gain an advantage in the EPC bidding competition scheduled for next year.

Samsung Engineering has consistently pursued a pre-stage order strategy such as FEED. Last year, it achieved EPC-linked orders after performing FEED for the Dos Bocas refinery project in Mexico and the Sarawak methanol project in Malaysia. This year, it continues to produce results by securing the FEED for the Indonesia CAP2 project.

Samsung Engineering stated, "Our strong technical competitiveness based on solid design capabilities and the abundant local experience accumulated through more than 10 projects in Indonesia shone in this contract win," adding, "The robust partnership developed through multiple projects with collaborators such as Technip also served as a differentiated competitive advantage."

A company official said, "We are continuously achieving results in the FEED field with differentiated design technology," and added, "We will successfully carry out this FEED, lead EPC-linked orders, and strengthen our presence in the Southeast Asian region."

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