Samsung Engineering Wins 890 Billion KRW Contract for Malaysia Gas Plant

Contract for the Malaysia Shell OGP Project

[Asia Economy Reporter Park Sun-mi] Samsung Engineering has succeeded in securing a large-scale gas plant project in Malaysia with its 'FEED to EPC' strategy, linking front-end engineering design (FEED) to engineering, procurement, and construction (EPC).

On the 13th, Samsung Engineering announced through a public disclosure that it had signed a contract for the 'Malaysia Shell OGP Project' worth approximately 890 billion KRW (680 million USD) with Sarawak Shell, a subsidiary of the global energy company Shell. Samsung Engineering will carry out EPC (engineering, procurement, and construction) and plans to complete the project by 2025.

The plant, to be constructed in the Bintulu area of Sarawak state in eastern Malaysia, will process 800 million cubic feet (ft³) of gas per day. This plant will remove impurities such as sulfur from the gas extracted from deepwater gas fields, and the purified gas will be sent to nearby LNG liquefaction facilities to be used as raw material.

With this order, Samsung Engineering has secured Shell, a global oil major, as a new client. Shell is one of the representative International Oil Companies (IOCs) that conducts extensive investments and developments not only in its home country but worldwide. Samsung Engineering, which already has IOC clients such as ExxonMobil, will accelerate its expansion in the IOC market through this contract.

Starting from FEED (front-end engineering design) work in 2020, Samsung Engineering has linked the order through to EPC work, participating in the entire process of this project. Over the past few years, Samsung Engineering has strived to secure EPC projects through technology-based FEED execution and has previously won projects such as the Dos Bocas refinery in Mexico and the Sarawak methanol plant in Malaysia using the FEED to EPC strategy.

Samsung Engineering plans to successfully execute the project by applying its rich experience accumulated from over 10 projects in Malaysia, along with the company's differentiated innovative technologies such as automation and modularization.

A company official stated, "Based on a high level of project understanding from FEED execution, abundant regional and product experience, and partnership with the client, we secured the EPC main project following FEED," adding, "We will successfully carry out this project to solidify client trust and further strengthen our position in the Southeast Asian region."

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