Contract with Saudi Aramco for Fadali Project
Third Largest Overseas Construction Order in History
Samsung E&A (formerly Samsung Engineering) and GS Engineering & Construction have succeeded in securing an overseas plant order worth $7.2 billion (approximately 9.7 trillion KRW) in Saudi Arabia. This is the largest order in the history of Korean companies’ contracts in Saudi Arabia. It ranks third among global overseas construction orders, following the Barakah Nuclear Power Plant in the United Arab Emirates (2009, $19.1 billion) and the Bismayah New City in Iraq (2012, $7.7 billion). The Presidential Office evaluated this order as one of President Yoon Suk-yeol’s achievements in summit diplomacy and expressed high expectations that it will boost the achievement of this year’s overseas construction order target of $40 billion.
Panoramic view of the Fadili Gas Plant Complex in Saudi Arabia (Photo by GS Engineering & Construction)
Samsung E&A’s Largest Order Since Its Founding
According to Samsung E&A on the 3rd, President Namgung Hong attended the signing ceremony for the ‘Fadhili Gas Increment Program Package 1 & 4’ held on the 2nd at the Aramco Plaza Conference Center in Daran, Saudi Arabia, and signed the contract.
Samsung E&A President Namgung Hong (front row left) and Vice President Yahya Abushal (front row right) signed a contract for the 'Fadhili Gas Expansion Program Package 1 and 4' project with Saudi Aramco. (Photo by Samsung E&A)
The order amount is approximately $6 billion (8 trillion KRW), marking the largest order since Samsung E&A’s establishment. From the client, Saudi Arabia’s state-owned oil company Aramco, Vice Presidents Wail A. Al Jaafari and Yahya A. Abushal attended the ceremony.
The Fadhili Gas Increment Program is a project to expand the capacity of the existing Fadhili gas plant located 350 km northeast of Riyadh, the capital of Saudi Arabia. Samsung E&A will undertake Package 1, which involves constructing gas processing facilities, and Package 4, which involves building utility and auxiliary facilities. Upon completion, the daily gas processing capacity will increase from the current 2.5 billion cubic feet (2500 MMSCFD) to 3.8 billion cubic feet (3800 MMSCFD).
First Large-Scale Middle East Order Since 2017
On the same day, GS Engineering & Construction CEO Heo Yoon-hong also attended the event and finalized the order for the ‘Fadhili Gas Increment Program Package 2’ sulfur recovery facility construction worth $1.22 billion (1.6 trillion KRW). This is the first overseas plant project order secured this year. It is also the first order in the Middle East since the $2 trillion RRW project (RRW Units Restoration Project) secured in the United Arab Emirates (UAE) in 2017.
On the 2nd, after signing the Fadhili Gas Expansion Program contract in Al Khobar, Saudi Arabia, Huh Yoonhong, CEO of GS Engineering & Construction (left in the photo), and Yahya Abushal, Vice President (right), along with other officials, are taking a commemorative photo. (Photo by GS Engineering & Construction)
GS Engineering & Construction will build three sulfur recovery facilities capable of recovering 800 tons of sulfur. The company will carry out the entire project scope, including design, procurement, construction, and commissioning support. The sulfur recovery facility is an advanced system that captures and recycles sulfur generated during the gas refining process. By capturing sulfur, a toxic substance contained in gas produced from oil fields, it increases the added value of the final product and creates economic value by utilizing high-purity sulfur.
Comprehensive Government Support for Mega Project Orders
Samsung E&A cited "innovative achievements demonstrated in the Aramco project" as the background for winning the order. Aramco executives reportedly highly evaluated the modular technology applied in the Jafurah project during the signing ceremony. Samsung E&A is currently carrying out the Jafurah gas processing and Unayzah gas storage projects in Saudi Arabia.
GS Engineering & Construction is currently exploring participation in bidding as new orders increase, leveraging its accumulated capabilities. A GS Engineering & Construction official stated, "Based on over 50 years of diverse construction capabilities accumulated domestically and internationally and extensive experience in overseas EPC plant projects, we will lead the successful execution of this project," adding, "We will strive to strengthen the plant business, which is a key pillar of GS Engineering & Construction’s business portfolio."
The Presidential Office analyzed this order as a result of President Yoon’s summit diplomacy. Following a meeting with Saudi Crown Prince and Prime Minister Mohammed in November 2022, President Yoon made a state visit to Saudi Arabia in October last year, during which the two countries pledged to strengthen cooperation in construction and infrastructure through a joint statement.
Furthermore, from the beginning of this year until the 2nd, overseas construction orders reached $12.72 billion, more than double the $6.11 billion recorded during the same period last year, raising prospects for achieving this year’s order target of $40 billion.
The Presidential Office emphasized that, based on the trust between the two heads of state, it plans to provide comprehensive support for securing mega projects in infrastructure, plants, and smart cities from major clients such as Aramco, the Public Investment Fund (PIF), and NEOM.
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