Hyundai Engineering Wins EPC Contract for 100 Billion KRW Russian Gas Processing Facility

Entering the Russian Market Following the European Union (EU) Plant Market
Advancing into Oil and Gas Processing EPC Projects After Securing Methanol EPC-Linked FEED Project in Russia
Achieving New Market Development and Diversification Strategy Through Orders in Europe, the US, and Southeast Asia

Location map of the Orenburg gas processing facility in Russia / Provided by Hyundai Engineering.

[Asia Economy Reporter Kangwook Cho] Hyundai Engineering is expanding its business scope in Russia, an energy powerhouse with the world's largest natural gas reserves and production, by winning the EPC project for the Russia Orenburg Gas Processing Plant.

On the 14th, Hyundai Engineering announced that it had signed an EPC contract worth 100 billion KRW (including LPG separation facilities) for a gas processing plant commissioned by the Russian private oil company Novi Potok in Orenburg Oblast, Russia. Later this month, a groundbreaking ceremony will be held with the attendance of Denis Pasler, Governor of Orenburg Oblast, and the head of Hyundai Engineering's Moscow branch, marking the official start of construction.

The Russia Orenburg Gas Processing Plant project Hyundai Engineering secured is an EPC project to build a gas refining and processing plant, utilities, and auxiliary facilities at the oil field located in Buzuluk, Orenburg Oblast, about 1,500 km southeast of Moscow, with a construction period of 22 months.

This order is regarded as the first EPC project won by a domestic construction company in Russia, reflecting recognition of Hyundai Engineering's chemical plant design technology and execution capabilities.

Previously, in 2019, Hyundai Engineering successfully carried out the EPC-linked Front-End Engineering Design (FEED) service for a methanol production plant in Russia. Additionally, at the St. Petersburg International Economic Forum held on the 4th of this month, Valery Subotin, Chairman of the client Gas Synthesis, and Kim Chang-hak, President of Hyundai Engineering, signed an agreement to finalize the EPC contract amount within two months, raising expectations for additional EPC orders.

A Hyundai Engineering official stated, "Recently, we were selected as the preferred negotiator for the Poland PKN Olefin expansion project and secured this Russian gas processing EPC project, demonstrating that our new market development and market diversification strategies in Europe, the U.S., Russia, and Southeast Asia are bearing fruit." He added, "We will fully leverage Hyundai Engineering's plant design technology and project execution capabilities to successfully complete the project and do our best to secure additional orders in Russia."