Malaysian Petrochemical Plants
Samsung Engineering Co. has won two orders for the construction of petrochemical plants in Malaysia for a total value of 1 trillion won (US$880 million).
The company said on Dec. 4 that it has received a letter of award (LOA) from Malaysia’s Petronas Chemicals Group for the plant construction deals.
Under the agreement, Samsung Engineering is to build a US$300 million (348.3 billion won) plant to produce linear low density polyethylene (LLDPE) with an annual production capacity of 35 tons and a US$580 million (673.38 billion won) plant to produce ethylene glycol (EG) with an annual production capacity of 74 tons. The two plants are expected to be located in the southern state of Johor in Malaysia.
The Korean company will be responsible for the engineering, procurement and construction (EPC) on a turnkey basis, and will complete the two contracts by 2019. The two plants are part of the so-called Refinery and Petrochemical Integrated Development, or Rapid project. The Rapid project is to integrate a refinery with a daily production capacity of 300,000 barrels and a petrochemical facility with an annual production capacity of 3 million tons. The plants will be supplied raw materials from an ethylene plant to be constructed in the same complex.
With the latest order, Samsung Engineering established a strong partnership with Malaysian state-owned oil company. Petronas Chemicals is the oil giant which posted 100 trillion won (US$86.13 billion) in sales in 2014 alone.
An official from Samsung Engineering said, “Petronas Chemicals’ constant trust in Samsung Engineering’s performance capability has led to the award of the contracts. It will also have a positive effect to win other possible projects .”