Hyundai E&C lands $145M deal to build transmission lines in Saudi Arabia

The Riyadh 380-kilovolt power transmission lines in Saudi Arabia constructed by Hyundai E&C [HYUNDAI E&C]

Hyundai Engineering & Construction (Hyundai E&C) has won a $145 million contract to lay transmission lines and build related infrastructure by 2027 in Saudi Arabia.

The deal, commissioned by the Saudi Electricity Company, concerns a project designed to construct a 525-kilovolt (kV) high-voltage direct current (HVDC) power transmission line connecting the city of Yanbu to NEOM, a new urban area designated for a large-scale smart city initiative.

The project aims to enhance the power grid by connecting the Yanbu area, which is the power generation hub of Saudi Arabia's western coast, to the NEOM area, spanning 605 kilometers (375 miles).

Hyundai E&C will oversee Portion 1 of the project, which involves installing a 207-kilometer HVDC transmission line and approximately 450 transmission towers. Hyundai E&C secured the contract for this project through a turnkey approach, taking responsibility for all stages, from design and procurement to construction. The projected completion date is July 2027.

"We once again proved our expertise in engineering, procurement, and construction through a turnkey contract that is in charge of the entire project," the company said.

HVDC transmissions are used to interconnect two substations with different frequencies to allow for efficient power transfer. The HVDC transmission comes with reduced energy loss, especially over long distances when compared to the traditional alternating current (AC) transmission system. Moreover, it can operate across different AC systems, independent of frequencies.

Since constructing the first transmission line in Saudi Arabia in 1976, Hyundai E&C has completed 33 projects over the past 50 years. Now, Saudi's $500 billion NEOM urban project is offering further vast investment opportunities. Together with Samsung C&T, another Korean builder, Hyundai E&C is involved in the construction of a mountain railway tunnel at NEOM's linear city, "The Line."

"We will contribute to expanding Saudi Arabia's power grid and, moreover, strengthen our position in the carbon-neutral power infrastructure sector," a Hyundai E&C official said.

Hyundai E&C closed at 37,800 won ($29.4), up 1.07 percent from the previous trading day, on Tuesday.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]