Samsung, GS win $7.2 bn gas plant project in Saudi

South Korea’s Samsung Engineering (new name: Samsung E&A) and GS Engineering & Construction Corp. (GS E&C) won a $7.2 billion contract for the Fadhili Gas Increment Program in Saudi Arabia.

It’s the largest construction project ever awarded to a South Korean company in Saudi Arabia.

According to the South Korean Presidential Office, the world’s top oil company Saudi Arabian Oil Co. (Aramco) awarded engineering procurement construction (EPC) contracts for the Fadhili Gas Plant increment project to Samsung Engineering and GS E&C. 

Eclipsing the $5 billion Amiral project awarded in June last year, this endeavor stands as the third-largest international construction order in the history of South Korean corporations.

The Presidential Office lauded this achievement as a testament to the robust diplomatic ties with Saudi Arabia.

In November 2022, a diplomatic engagement occurred when President Yoon Suk Yeol met with Mohammed bin Salman Al Saud, the Crown Prince and Prime Minister of Saudi Arabia.

They committed to advancing their bilateral relationship into a future-oriented strategic partnership, emphasizing large-scale economic cooperation in infrastructure.

A state visit to Saudi Arabia in October last year further solidified this commitment, resulting in a joint statement to enhance cooperation in the construction and infrastructure sectors.

This contract has boosted South Korea's total overseas construction orders for the year to $12.7 billion, doubling the $6.1 billion from the same period last year.

Analysts are optimistic about achieving this year's ambitious $40 billion order target, a significant leap from last year's total of $33.3 billion in overseas construction orders.

The official underscored the government's commitment to supporting various global projects, including petrochemical facilities, railway systems, and desalination projects.

Write to Byung-Uk Do at dodo@hankyung.com