Samsung Eng. wins $19.5 mn Saudi petrochemical plant design contract

South Korea's Samsung Engineering has secured a front end engineering design (FEED) project for a PDH·PP·UTOS Plant in Saudi Arabia, marking a significant stride in the company’s ongoing ventures.

The company said on Wednesday that it has received a notice of award (NoA) from Alujain National Industrial Co., Saudi Arabia, for the project, valued at $19.5 million.

The project, scheduled for completion by May 2024, is located in the Yanbu Industrial Complex in Saudi Arabia's Medina Province. It involves developing the basic design for a propane dehydrogenation (PDH) plant with an annual capacity of 600,000 tons, a polypropylene (PP) plant with an annual capacity of 500,000 tons, and the requisite utilities & offsite (UTOS) facilities.

Samsung Engineering's competitive prowess in FEED engineering technology and extensive experience in the PDH and PP fields were pivotal in securing this contract.

Alujain's awarding of the FEED contract, following a previous Pre-FEED contract, signals a robust vote of confidence in Samsung Engineering’s capabilities.

With an eye on the future, Samsung Engineering intends to ensure the project's success and is poised to secure the engineering, procurement, and construction (EPC) contract, anticipated for release in mid-2024.

Samsung Engineering brings to the table a wealth of regional experience, having executed 32 projects in Saudi Arabia, including five PDH and PP projects.

The company's successful completion of the Luberef lube base oil plant in Yanbu provides it with a strong foundation in existing regional infrastructure and know-how, contributing significantly to the prospective success of the new project.

Write to Hyung-Kyu Kim at khk@hankyung.com