KUALA LUMPUR: Korean construction and project management company Samsung Engineering Co Ltd has bagged a US$680 million engineering, procurement, construction and commissioning (EPCC) contract for a gas plant in Malaysia.
Samsung Engineering received a contract from Sarawak Shell Bhd (SSB) for its Onshore Gas Plant (OGP) for the Rosmari Marjoram project in Bintulu, Sarawak.
The project will be executed in two phases with a limited scope before SSB obtains its final investment decision (FID) for the Rosmari Marjoram project, with all of the remaining scopes to be executed after SSB receives FID.
"The OGP plant will have the capacity to process up to 800 million cubic feet of gas per day.
"Samsung Engineering will execute the OGP project on an EPCC basis," it said in a statement.
The OGP project's readiness for a start-up is expected to be accomplished by the end of 2025.
Samsung Engineering president and chief executive officer Sungan Choi said the company's good track record has proved to be the right strategy to receive the contract.
"We're gratified and honoured to deliver a modern and sophisticated onshore gas plant for Shell in Sarawak," said Choi.
Samsung Engineering received this contract after competing and emerging as the successful bidder in 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 Hibiscus Green Hydrogen/Ammonia project in Sarawak.
Samsung Engineering is further looking into discovering new business opportunities by accumulating experience in the gas market and will continue to secure additional experience in executing FEED to EPC conversion projects.
Additionally, Samsung Engineering will look to grow its future participation in additional FEED and EPC projects in Malaysia.