Gas Terminal Deal
Samsung Engineering announced on September 13 that it won the Terengganu Gas Terminal (TGAST) project worth US$770 million (834 billion won) from US-based oil and gas firm Hess Corporation, and Petronas Carigali, the Exploration and Production subsidiary of Malaysia’s national oil company Petronas.
This project involves the construction of a gas terminal in Kerteh, Terengganu, which lies about 260km northeast of Kuala Lumpur. The gas terminal will produce 700 million cubic feet each day by removing impurities such as carbon dioxide (CO2) and hydrogen sulfide (H2S) from natural gas extracted at sea.
The Korean company will carry out all processes of the project on a lump sum turn-key basis, from designing the plant to purchasing required equipment, constructing the plant itself, and operating test runs. It is planning to complete the project by July 2016.
It was reported that as the only Korean bidder, Samsung won the contract in the face of stiff competition from European and Japanese companies in the invitation-only bidding conducted by Petronas.