Samsung Engineering Wins 1.6 Trillion Won Project in Qatar, Signaling Strengthened Presence in the Middle East

Qatar Mega Ethylene Plant Order Received

Namgung Hong, President of Samsung Engineering (second from the right), and project officials are taking a commemorative photo at the signing ceremony. / Photo by Samsung Engineering

[Asia Economy Reporter Kim Pyeonghwa] Samsung Engineering has secured a mega ethylene plant project worth 1.6 trillion KRW in Qatar, expanding its business footprint in the Middle East.

Samsung Engineering announced on the 9th that it signed an Engineering, Procurement, and Construction (EPC) contract for the 'Qatar RLPP (Ras Laffan Petrochemicals Project) Ethylene Plant Package 1' with the client Ras Laffan Petrochemicals. Ras Laffan Petrochemicals is a joint venture between QatarEnergy, Qatar's state-owned energy company, and the US-based Chevron Phillips Chemical.

Samsung Engineering carried out this contract through a joint venture (JV) with Taiwan's CTCI, which has extensive experience in Qatar. Of the total contract value of approximately 3.1 trillion KRW, Samsung Engineering's portion is about 1.6 trillion KRW. The contract period is 44 months.

This project involves constructing ethylene production facilities and utility & offsite (U&O) infrastructure in the Ras Laffan industrial city, located 80 km north of Doha, the capital of Qatar. Upon completion, it will produce 2.08 million tons of ethylene annually, making it the world's largest, and supply it to nearby high-density polyethylene (HDPE) packages. Samsung Engineering is responsible for the main ethylene production facilities in this project, while CTCI will handle the utility and offsite infrastructure.

Samsung Engineering stated that this order allows them to secure new clients and diversify their overseas markets. As Qatar, a traditional resource-rich country in the Middle East, is intensively promoting the construction of large petrochemical complexes to diversify its existing gas and LNG-centered industrial structure, Samsung Engineering plans to actively target the local market and increase business opportunities. They also revealed plans to apply their business execution innovation strategies, such as modularization, automation, and early procurement of equipment, to this project.

A Samsung Engineering official said, "Having secured a key product in the Middle East where we have extensive experience, we will successfully execute the project based on our top-tier technology," adding, "We will strengthen our position in the Middle East market."