Hyundai E&C Lands 6.5 Tln Won Refinery Project in Saudi Arabia, Largest-Ever One

HDEC President Yoon Young-joon. (Photos: HDEC)

Hyundai Engineering & Construction Co. (HDEC) has been awarded contracts for two EPC packages related to a petrochemical expansion at the Satorp refinery in Jubail, Saudi Arabia.

The value of the refinery project stands at $5 billion (about 6.5 trillion won), the largest-ever such contract for a Korean company in Saudi Arabia.

The deal comes as the first outcome of a summit between President Yoon Suk-yeol and Saudi Crown Prince Mohammed bin Salman Al Saud.

The latter made a state visit to Korea last December. Public attention is on whether it may ignite a “2nd Middle East boom,” as Korean contractors enjoyed a boom in the Middle Eastern construction market in the 1970s.

Package 1 (Mixed Feed Cracker and Refinery Off Gases) involves installing a Mixed Feed Cracker (MFC) to produce an additional 1,650 KTA (kilo tons per annum) of ethylene and related industrial gases.

Package 4 (Utilities, Flares & Interconnecting) relates to installation of facilities that supply utilities, such as electricity and water to plants, and functions as interconnecting systems that support main packages within the facilities.

The project is located at Jubail Industrial City, which is about 70 km northeast of Dammam. Once completed, the new petrochemical complex will be one of the largest downstream facilities in Saudi Arabia.

Minister Won Hee-ryong of the Ministry of Land, Transport and Infrastructure, President Yoon Young-joon of Hyundai Engineering & Construction Co. (HDEC), Abdulkarim Al Ghamdi, Saudi Aramco’s Senior Vice President for Project Management, and François Good, Senior Vice President, Refining & Petrochemicals Orient, Total attend a ceremony to sign contracts for two EPC packages related to a petrochemical expansion at the Satorp refinery in Jubail, Saudi Arabia.

HDEC will execute detailed design, procurement, construction, commissioning and start-up activities on a lump-sum turn-key basis with a contract value of around $5 billion.

HDEC has proven its capabilities by having previously successfully completed projects in Saudi Arabia, including facilities at Khursaniyah Gas Plant and Uthmaniyah Gas Plant.

Award of these new EPC contracts demonstrates the competitiveness of HDEC’s technology and client confidence, helping it maintain a leading position in the Middle East construction market.

HDEC first set foot in Saudi Arabia in 1975 and subsequently struck a historic deal for the industrial port in Jubail, on the coast of the Arabian Gulf.

It has since built its presence in the kingdom, executing over 160 projects with a combined value of $18.3 billion.

Currently, HDEC is executing 13 projects worth $4.87 billion in Saudi Arabia, including Package 6 and 12 of the Marjan Oil Field Development Program, Jafurah Package 2, and a number of Transmission Lines and Substation Projects.

HDEC is recognized for its outstanding construction and technological prowess by its clients.