Samsung Engineering secures US$680 mln contract to build onshore gas plant in Sarawak

13/07/2022 04:06 PM

KUCHING, July 13 (Bernama) -- Samsung Engineering of South Korea today announced that it had secured a US$680 million contract from Sarawak Shell Bhd (SSB) to build an onshore gas plant (OGP) for SSB’s Rosmari Marjoram project in Bintulu, about 620km north from here.

In a statement, it said the contract was for engineering, procurement, construction and commissioning (EPCC) of the plant, which would be executed in two phases where the first phase would be carried out on a limited scope before SSB made its final investment decision (FID), with the remaining scope to be executed after the FID is obtained.  

“The OGP plant will have the capacity to process up to 800 million cubic feet of gas per day. The OGP project’s RFSU (ready for start-up) is expected to be accomplished by the end of 2025,” it said.

According to the statement, Samsung Engineering was able to receive this contract after competing and successfully emerging as the successful bidder from the dual Front End Engineering and Design (FEED).

“Samsung Engineering has a proven track record in executing gas projects in Malaysia and is currently executing the Sarawak methanol project and developing the H2biscus Green Hydrogen/Ammonia Project in Sarawak,” it said.

Samsung Engineering president and chief executive officer Sungan Choi said its track record, regional expertise and sustainable investment in Sarawak, coupled with the strategy to participate from the FEED stage and rollover to execute a total solution in EPCC had enabled them to secure the contract. 

“We’re gratified and honoured to deliver a modern, sophisticated and premium OGP for Shell in Sarawak,” he said.

Samsung Engineering is further looking into discovering new business opportunities by accumulating experience in the gas market and will continue securing experience in executing a FEED to EPC conversion projects. 

“Additionally, Samsung Engineering will look to grow its future participation in additional FEED as well as EPC projects in Malaysia. Samsung Engineering is prepared to become a “Beyond EPC, Green Solution Provider” for a better future,” the statement said.