Hyundai Construction won a $5 billion contract from Saudi Aramco to build a large Sinopec project and also won some projects
News from the Financial Associated Press, June 25 (edited by Zhou Ziyi)South Korea’s Ministry of Land, Infrastructure, Transport and Tourism said on Sunday (June 25) that Hyundai Construction Co and Saudi Arabian National Oil Company (Aramco, Aramco) signed an agreement to build a large petrochemical plant in eastern Saudi Arabia.
According to the agreement, Hyundai Construction successfully undertook the first and fourth construction projects of Saudi Aramco’s “Amiral” petrochemical facility, with a contract size of US$5 billion, the largest contracted project by a Korean company in Saudi Arabia.
The “Amiral” project is a petrochemical facility expansion project of the SATORP refinery in Saudi Arabia. According to the Saudi Ministry of Land, Infrastructure and Transport, the “Amiral” project aims to build a large-scale facility in the eastern Saudi city of Jubail to produce basic petrochemicals such as ethylene.
South Korea’s Minister of Land, Infrastructure, Transport and Tourism Won Hee-ryong attended the signing ceremony in Saudi Arabia on Sunday and said he would spare no effort to support large-scale infrastructure projects in the Middle East.
The most contracted by Korean enterprises
The Saudi Ministry of Land, Infrastructure and Transport said the latest Hyundai E&C contract is the largest factory construction order ever received by a South Korean company from Saudi Arabia. That brought South Korea’s total overseas orders in the sector to more than $13.7 billion, surpassing last year’s total of $12 billion.
Won added that the deal was the result of discussions between South Korean President Yoon Suk-yue and Saudi Crown Prince Mohammed bin Salman last November.
President Yoon welcomed the Amiral project, saying it would lay a solid foundation for the mutual prosperity of the two countries and strengthen bilateral economic ties, South Korean presidential spokesman Lee Do-woon said on Sunday.
On Saturday (24th) local time, Saudi Aramco and Total Energy, the project partner, signed engineering, procurement and construction (EPC) contracts for the “Amiral” integrated project with a number of companies. In addition to Hyundai Construction taking the largest share, there are also six companies including Sinopec Engineering (Group) Saudi Company and Maire Tecnimont participating in the project construction.
The Amiral project is expected to produce 1.65 million tons of ethylene and other industrial gases per year and will begin operations in 2027 with a total investment of US$11 billion. Saudi Aramco and Total will jointly invest about $4 billion, taking 62.5 percent and 37.5 percent of the equity in the project, and construction will begin next year.