Samsung C&T Hits Jackpot, lands 4 Tln Won Plant Order in Qatar

Chairman Koo Ja-kyun of LS ELECTRIC poses with President Lee Jae-eon of Samsung C&T T&I Group and COO Kim Jong-woo of LS ELECTRIC after Samsung C& and LS ELECTRIC struck an MOU to jointly implement global new businesses at Samsung Main Building in Taepyeong-ro, Seoul, on Nov. 25. (Photo: LS ELECTRIC)

Samsung C&T Construction Group said on Nov. 26 the company won a desalination combined cycle power plant project, worth some 4 trillion won, from Qatar.

The latest winning order is the second largest a Korean contractor has won so far this year, following Samsung E&A and GS E&C’s landing of mega gas plant projects worth a combined 9.6 trillion won in Saudi Arabia in the first half of 2024.

The project won by Samsung C&T calls for constructing a combined cycle power plant capable of generating 2,400MW of power and a desalination combined cycle power capable of producing 500,000 tons of water per day in the Ras Abu Pontas area, about 18 km southeast of Doha, the capital of Qatar.

The project, commissioned by Qatar Electricity and Water Authority Karama (KAHRAMAA), was awarded to Japan’s Smitomo Consortium.

Samsung C&T has teamed up with Smitomo Consortium from the stage of bidding, and the EPC (engineering, procurement, and construction) worth some 3.97 trillion won has gone to Samsung C&T.

The total costs of project stand at some 5,173.3 billion won.

A Samsung C&T official said, “The latest winning order is the largest overseas one Samsung C&T has landed following the winning of a super high voltage DC transmission network project from the United Arab Emirates in 2021, and if the project is completed in 2029, the facilities will account for some 15 percent of Qatar’s total power generation and 17 percent of its desalinated water supply.”

As large contractors suffered setbacks in the Korean construction market in recent years, they have scrambled to win overseas orders.

Samsung E&A will carry out the EPC, worth some 8 trillion won, for the Fadhili Gas Plant Project the company won from Aramco in April.

The total cost of the project stands at 9.6 trillion won. It was the largest-ever overseas order Samsung E&A has won since its founding.

Samsung C&T Construction Group chalked up 6.8 trillion won worth of overseas orders the contractor landed in the first 11 months of this year.

The figure topped some 7.59 trillion won, the total value of domestic orders the contractor has won in Korea so far this year.

With the addition of the latest order in Qatar, Samsung C&T Construction Group is expected to rise from 4th place in the third quarter of this year in rankings of landing overseas orders to second place.

Samsung C&T Joins Forces with LS ELECTRIC to Cooperate in Renewal Energy Business

Samsung C&T Trading Group plans to implement global renewable energy business projects in cooperation with LS ELECTRIC.

Samsung C&T and LS ELECTRIC struck an MOU to jointly implement global new businesses at Samsung Main Building in Taepyeong-ro, Seoul, on Nov. 25 with President Lee Jae-eon of Samsung C&T Trading Group and COO Kim Jong-woo of the Power CIC Division at LS ELECTRIC in attendance.

Both sides agreed to establish a joint venture and select a battery energy storage system project with a capacity of 500MW Samsung C&T is developing in the United States as their first joint project.

Samsung C&T and LS ELECTRIC’s joint participation in the project, at an initial stage will raise its value.

Samsung C&T will be responsible for the development sector, including acquisition of various licenses and permits, while LS ELECTRIC will be in charge of the technology sector, such as provision of electricity solutions.

The two companies’ collaboration aims to have synergetic effects based on their expertise and knowhow.

Samsung C&T is accelerating efforts to expand the U.S. photovoltaic power business, which is maintaining a steady growth in the recent three years.

The company plans to ramp up the competitiveness of the photovoltaic power development business by diversifying models, such as the execution of joint projects through partnership, a departure from a model of disposing of business rights prior to groundbreaking after acquiring various licenses end permits.

LS ELECTRIC has a strategy to become a global ESS total solution company by expanding its ESS business boundary to North America beyond Japan and Europe through collaboration with Samsung C&T with expertise of developing U.S. photovoltaic power plants.

In particular, the company plans to accelerate efforts to make an inroad into the U.S. power infrastructure market by making the most of the competitiveness of its total solutions ranging from power transmission to distribution since the stability of power grid is getting significant in the wake of spreading of renewable energies.