Hyundai E&C lands $3B deal in Middle EastAfter a lengthy drought in overseas orders, Hyundai Engineering & Construction and Hyundai Engineering have grasped a $2.93 billion gas plant development project in the Middle East.
The construction units of Hyundai Motor Group on Monday announced they have won the project commissioned by the Kuwait National Petroleum Company (KNPC). The project will be led by Hyundai E&C and also involve Hyundai Engineering and Korea Gas Corporation.
The new project is to build a liquefied natural gas (LNG) importing terminal at Al-Zour, 90 kilometers south of the capital Kuwait City.
The terminal consists of a regasification facility capable of liquefying 3 billion cubic meters of gas a day and eight 225,000 cubic meter LNG storage tanks. Engineering works for a shoreline berth structure are also part of the project, which is expected to be completed by 2020.
Last year was a crisis for the global construction market largely due to the prolonged trend in low oil prices.
Many orders from the Middle East were either delayed or cancelled resulting in total orders collapsing, from $31.3 billion in 2014 to $16.5 billion last year. The sluggish performance continued until February this year mounting concerns in the industry.
“It is meaningful that we won the project amid slumping orders from the Middle East which stem from a drop in oil prices,” said Hyundai E&C CEO Jung Soo-hyun. “The new project is expected to gather a new momentum in the industry.
“We will expand our presence in the overseas markets including other countries in the Middle East and also Iran, taking this project as an opportunity.”
BY KIM JEE-HEE [email@example.com]