A view of Nigeria’s LNG liquefaction plant. (Photos: Daewoo E&C)

Daewoo E&C, an EPC contractor for an Nigeria’s LNG (NLNG) liquefaction plant in Bonny Island, about 25 miles south of Port Harcourt, Rivers State, held a groundbreaking ceremony for the NLNG Train 7 on June 15.

Among those on hand at the event were Nigerian President Muhammadu Buhari and other ranking Nigerian officials, including the petroleum minister.

Daewoo E&C struck a contract for the NLNG Train 7 project as an EPC contractor in May last year, but the contractor focused on design and procurement to minimize the effects caused by the spread of the coronavirus pandemic, as well as preparatory work on the launch of the project.

The groundbreaking ceremony served as an opportunity for officials with the project to reconfirm their full support of the successful implementation of the project by dispelling worry about its delay, despite outside environmental conditions, a Daewoo E&C official said.

In fact, the progress of the NLNG Train 7 project was standing at 7.28 percent, a little higher than planned at 7.09 percent. Preparatory work on the full-fledged implementation of the project such as ground levelling and the construction of approach roads and office and accommodation facilities was getting under way.

The value of the NLNG Train 7 project amounts to 5,181.1 billion won. Daewoo E&C, an EPC contractor for the joint venture, accounts for a 40 percent stake or about 2,066.9 billion won.

For Daewoo E&C, the project takes on significance since the Korean construction company has secured a status of an EPC contractor in the LNG liquefaction plant construction market, dominated by global construction companies.

Daewoo E&C’s winning the NLNG Train 7 project was owed to the Korean contractor’s track record of successfully constructing five out of Nigeria’s six NLNG Train units.

Daewoo E&C has been evaluated highly for its experience related projects and resources, and the drawing of execution plans suiting local conditions.

It was noteworthy that Nigeria’s President Muhammadu Buhari and other ranking officials made the implementation of NLNG Train 8 official.

Chances are high that if the upcoming project is launched in earnest, Daewoo E&C will land the additional project.

A Daewoo E&C official said the contractor, with a global competitive edge in the eco-friendly LNG liquefaction plant sector, is expected to pursue continuous growth and orders, and the NLNG Train 7 project is predicted to serve as a cornerstone to be a global contractor.

Daewoo E&C Ranks 1st in Korean Apartment Remodeling Sector in 2021 H1

Daewoo E&C won a project to remodel Suji Hyundai Apartments in Yongin on June 23.

The latest winning order came after the contractor was awarded an order to remodel the Garak Ssangyong No. 1 Apartments in Seoul in May.

Daewoo E&C’s winning two apartment remodeling mega-projects enabled it to top the domestic remodeling project market in the first half of this year.

 
The Suji Hyundai Apartment Project in Yongin calls for building a combined 1,343 units, an increase of 175 units. The value of the project stands at 387.6 billion won, excluding value-added tax.

A view of Daewoo E&C headquarters.

Jungheung Construction Named Preferred Bidder to Acquire Daewoo E&C

Jungheung Construction was designated as a preferred negotiator in a bid to take over Daewoo E&C.

The purchase price of a consortium of Jungheung Construction and Jungheung Civil Engineering is about 2.1 trillion won.

Daewoo E&C was on a roll in the overseas construction market before 1997 Asian financial crisis. In the wake of the disbanding of Daewoo Group, the contractor entered a workout program before it was handed over to Asiana Group.

As Asiana Group went belly up, Daewoo E&C was handed over to Hoban Construction. Overseas underperforming assets, discovered in the course of due diligence against Hoban forced the construction company to give up acquisition.

If realized, Jungheung Construction is expected to become a 3rd company to acquire Daewoo E&C.