South Korea’s Hyundai Engineering Co. won an order worth 3.8 trillion won ($3.3 billion) to build a petrochemical producing facility in Iran, the largest-ever deal for domestic constructors to clinch with a firm in the Middle Eastern country.
Hyundai Engineering President Sung Sang-rok and Ahdaf President Asghar Arefi pose for a picture after signing a deal for the second phase of Phase 12 of South Pars gas field project. [photo by Hyundai Engineering]
Hyundai Engineering announced on Monday that it signed the engineering, procurement, construction and financing (EPCF) agreement for the second phase of Phase 12 of South Pars gas field project with Ahdaf Co., a subsidiary of Iran’s state-owned National Iranian Oil Company (NIOC), on Sunday in Tehran. The deal came 10 months after it had signed a memorandum of understanding in May last year during former president Park Geun-hye’s visit to Iran.
Location of a petrochemical facility to be built by Hyundai Engineering for the second phase of Phase 12 of South Pars gas field project [source: Hyundai Engineering]
Under the deal, the construction firm will build a facility to produce 1 million tons of ethylene, 500,000 tons of monoethylene glycol, 350,000 tons of high-density polyethylene and 350,000 tons of low-density polyethylene per year in the world’s largest gas field South Pars in Tonbak, about 1,100 kilometer (683 miles) south of Iran’s capital Tehran. The construction is expected to take 48 months after breaking ground.
The 3.8 trillion won-worth deal is the largest for a domestic builder to win from an Iranian firm, much higher than 2.3 trillion won order that Daelim Industrial Co. had secured to add oil refinery facilities with Iran’s Isfahan Oil Refinery in December last year.
Hyundai Engineering said that the 85 percent of fund for the EPCF contract would be supported by Korean lenders such as Export-Import Bank of Korea and Korea Trade Insurance Corp.
By Lee Han-na
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Source: Pulse by Maeil Business News Korea (Mar. 13, 2017)