President Kim Hyung of Daewoo Engineering and Construction Co.

Daewoo engineering and Construction Co. clinched an LNG plant construction project worth 5 trillion won in Nigeria.
Daewoo E&C also won the qualification as the original project winner thanks to winning the huge LNG plant project in the global LNG plant construction market.

Securities sources said Daewoo E&C and its consortium, named SCDJV, clinched the huge project on Sept. 11 in Lagos, Nigeria, which was ordered by Nigeria LNG and Nigeria Gas Corp. LNG No. 7 Train (NLNG Train 7).

The consortium signed an agreement in the form of a letter of intent, which includes major points in the LNG plant project. The entire project is worth $4.3 billion, or around 5 trillion won, with Daewoo E&C’s share coming to around $1 billion or 1.2 trillion won.

The SCD JV consortium includes Italy’s Saipem and Japan’s Chiyoda Corp. with experiences for building LNG plants. Daewoo E&C participated in the project as a main partner, which is the first for a Korean construction firm.

The NLNG Train No. 7 facilities will be built on Delta State in Nigeria, including liquefaction and refinement facilities to eliminate water and sulfuric acid from natural gas to produce 8 million tons of LNG annually.

A view of the LNG Plants No.1-6 trains in Nigeria, won by the consortium SCDJV whose members include Daewoo E&C. (Photos: Daewoo E&C)

Daewoo E&C won the major partner rights in the consortium thanks to its experiences in 5 of the 6 LNG Train Projects in Nigeria. The company participated in the construction of 10 of 90 LNG facilities around the world, securing mid- to long-term growth engines.

Daewoo E&C has been doing relatively well despite the slowdown in both domestic and overseas construction markets unlike its rivals. The construction firms also won the Al Faw Project to build highways leading to the new harbor worth $70.35 million from GCPI in Iraq, which is part of Iraq’s ambitious plan to build 12 large ports, putting Daewoo in a good position to win additional orders.

The company has been focusing on Africa and the Middle East for new construction projects since President Kim Hyung came on the scene last June. The company says it is looking forward to winning an LNG Plant Project in Mozambique to add to the 6.381,4 trillion won worth of projects it won already this year.

In addition, Daewoo E&C is currently participating in a number of tenders for LNG liquefaction plant construction in Mozambique, Qatar and Indonesia. The company is planning to do so in Russia, Papua New Guinea, and so on as well.

South Korea’s Daewoo Engineering & Construction Co. (Daewoo E&C) bagged a $289 million order in a follow-up deal to build an ammonia and urea fertilizer factory in Nigeria.

Daewoo E&C said on recently it won the order from Indorama Eleme Fertilizer & Chemicals Ltd. to build a fertilizer plant with a daily capacity of 2,300 tons of ammonia and 4,000 tons of urea in Eleme, Port Harcourt, Nigeria.

The $700 million project will net Daewoo $289 million for the 32-month-long construction. Daewoo E&C successfully finished the first project to construct the world’s largest fertilizer plant for Indorama in March.

The successful completion helped to win the follow-up project, a company official said.