Samsung Engineering Co. (Seoul, South Korea) announced that it received an LOI (Letter Of Intent) for a $ 1.07 billion contract from Sarawak Petchem Sdn Bhd (Sarawak Petchem) for the construction of a methanol plant in Sarawak, Malaysia.
Samsung Engineering will build a 5,000 ton/day methanol production facility in Bintulu, Sarawak, eastern Malaysia. Samsung Engineering won the contract for the FEED (Front End Engineering Design) from Sarawak Petchem in April 2019 and the first Early Work contract in November 2019.
Samsung Engineering executed the Sarawak Petchem Methanol Plant Project from a feasibility study, FEED contract, Early Work phase, to a Licensor, Engineering, Procurement, Construction and Commissioning (LEPCC) contract with this LOI, effective from late January 2021. The plant will use Air Liquide’s technology and is expected completion in late 2023.
Samsung Engineering’s excellent FEED execution lead to the award for this EPC contract.
Samsung contract strategy, based on technology and digital transformation (DT), investing into FEED project implementation for the past several years, comes into fruition with the Sarawak Petchem Methanol Plant Project.
Moreover, Samsung Engineering has the opportunity to develop the market in Sarawak, which has large gas reserves in Malaysia, and therefore can create a promising position for future projects in the region.
Samsung Engineering’s President & CEO Sungan Choi stated, “We were able to receive this landmark project from Sarawak Petchem, by showing our exceptional engineering capabilities and commitment made during the FEED stage. Samsung Engineering has an excellent track record for petrochemical plants and in Malaysia, which will insure optimal project execution, while earning the trust of the client for many future joint projects to come.”
In addition to the Sarawak project in Malaysia, the $ 3.6 billion Mexico Dos Bocas refinery project, which also started with Samsung Engineering’s FEED strategy, was also recently awarded as a full EPC last month.
Samsung Engineering has set a target to spurring orders for new businesses based on FEED along with DT and technology advancements. Samsung plans to improve its constitution with customized marketing strategies for existing and new clients globally.