Samsung Engineering signs deal to build ethylene plant in Qatar

Industry

Published: 09 Jan. 2023, 16:21 Updated: 09 Jan. 2023, 19:20

Samsung Engineering signs deal to build ethylene plant in Qatar

Executives from QatarEnergy, Chevron Phillips Chemical, Samsung Engineering and CTCI attended a signing ceremony Sunday for an ethylene plant construction deal, at the QatarEnergy headquarters in Doha, Qatar. [SAMSUNG ENGINEERING]

Samsung Engineering clinched a 1.6-trillion-won ($1.3-billion) factory construction deal in Qatar, the company said in a regulatory filing on Monday.

It is part of a 3.13-trillion-won project to build an ethylene manufacturing plant in the Middle Eastern country. The rest of the facilities will be built by Taiwan’s CTCI.

Samsung Engineering and CTCI signed an engineering, procurement and construction deal with Ras Laffan Petrochemicals to construct the ethylene production plant in Ras Laffan Industrial City, 80 kilometers (50 miles) south of Doha.

Ras Laffan Petrochemicals is a 70:30 joint venture between state-run QatarEnergy and Chevron Phillips Chemical.

The ethylene plant will have a production capacity of 2.08 million tons a year, which is the largest of its kind in the world. The construction is expected to be completed by 2026.

Samsung Engineering and CTCI formed a joint venture for the project. The former will build the main production facilities, while the latter will handle the utility infrastructure.

Samsung Engineering’s share for the project is worth 1.6 trillion won, or 51.27 percent of total. The amount of the contract is equivalent to 21.41 percent of Samsung Engineering’s annual sales in 2021, according to the company.

It is Samsung Engineering’s second project in Qatar, following the Ras Laffan Diesel Hydrotreater project signed in 2011.

The signing ceremony was held on Sunday at QatarEnergy’s headquarters in Doha, with executives from Samsung Engineering, CTCI, QatarEnergy and Chevron Phillips Chemical in attendance.

“We’re confident that we can deliver a supreme project to Ras Laffan Petrochemicals and therefore strengthen our relationship with them and position ourselves firmly in the Middle East and North Africa market,” said Namkoong Hong, Samsung Engineering’s president and CEO.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]