Hyundai Engineering Wins 300 Billion KRW Contract for Thailand Rayong Refinery Project

Contract Signed for Refinery Modernization Project Worth 300 Billion KRW with IRPC, Subsidiary of Thai State-Owned Oil Company PTT
Construction of Facilities to Upgrade Diesel Produced at Rayong IRPC Plant to Euro 5 Standard
Building Local Trust through Successful Execution of Various EPC Projects with Major Thai Petrochemical Companies

Location map of the IRPC project in Rayong, Thailand / Provided by Hyundai Engineering.

[Asia Economy Reporter Kangwook Cho] Hyundai Engineering has succeeded in securing consecutive EPC contracts in the refinery upgrading sector in Southeast Asia.

On the 26th, Hyundai Engineering announced that it signed an EPC contract worth 300 billion KRW for the ‘Thailand Rayong Refinery Diesel Euro 5 Project’ with the client IRPC (Integrated Refinery & Petrochemicals Complex).

The contract signing ceremony, held online between Bangkok, Thailand, and Seoul, was attended by Hyundai Engineering President Changhak Kim and IRPC President Chawalit Tippawanich.

The ‘Thailand Rayong Refinery Diesel Euro 5 Project’ is located within the IRPC refinery industrial complex in the Rayong area, approximately 170 km southeast of Bangkok, Thailand. IRPC is a leading company operating petroleum and petrochemical complexes in Thailand.

This project involves constructing facilities to reduce the sulfur content of diesel fuel produced to Euro 5 levels, in accordance with the Thai Ministry of Energy’s policy confirming the implementation of Euro 5 emission regulations in 2024, and upgrading various related production facilities.

The Euro environmental regulations classify diesel fuel from Euro 1 to Euro 6 based on the levels of pollutants such as carbon monoxide and nitrogen oxides, according to the European Union (EU) vehicle emission standards. In line with the global trend of tightening environmental regulations, the Thai government plans to raise diesel fuel standards to Euro 5 by 2024.

Chawalit Tippawanich, President of IRPC, stated, "The Thailand Rayong Refinery Diesel Euro 5 Project is being promoted as a strategy to reduce fine dust pollution and strengthen long-term competitiveness," adding, "It is a project that ensures eco-friendliness and energy efficiency."

Previously, Hyundai Engineering has built trust locally by successfully carrying out various EPC projects with major petrochemical companies in Thailand such as Siam Cement Group (SCG), PTT Group, and Thai Oil Group, including winning the ‘Bangchak Refinery Upgrading Project in Bangkok, Thailand’ in 2018. Notably, experiences such as the ‘Malaysia Melaka Refinery Diesel Euro 5 Project’ and other similar projects in Southeast Asia contributed to gaining a competitive edge in this contract award.

Hyundai Engineering plans to leverage the successful execution of this project to secure advantageous positions in future anticipated additional project bids.

A Hyundai Engineering official said, "Orders continue in new markets such as Southeast Asia and Europe, showing that our new market entry and diversification strategies are bearing fruit," and added, "We will fully apply the abundant know-how accumulated in Thailand to successfully carry out this project, increase client satisfaction, and continuously lead follow-up orders in the future."