South Korea’s Hyundai to build $2.4bn Aramco gas plant

Aramco

Saudi Aramco, the world’s largest oil producer, and two South Korean companies will partner to build a $2.4 billion gas processing plant in the Jafurah gas field in Saudi Arabia.

The deal was signed with South Korea’s Hyundai Engineering & Construction and Hyundai Engineering Company, Yonhap news agency reported, citing South Korea’s presidential office.

The contract was signed during President Yoon Suk Yeol’s four-day state visit to Saudi Arabia.

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The Jafurah gas field is the largest in the Middle East, holding an estimated 200 trillion standard cubic feet of natural gas, according to the Aramco website.

The facility will play a key role in the country’s energy transition, helping it make progress towards its net zero ambitions.

The presidential office said the Aramco contract takes the total value of construction projects won by South Korean companies in Saudi Arabia this year to $8.6 billion.

Earlier, state-run Korea National Oil Corp (KNOC) signed an oil storage agreement with Aramco to reserve 5.3 million barrels for five years.

The Saudi-listed oil company in March broke ground on the $7 billion Shaheen petrochemical project, one of the largest integrated steam crackers in the world, in Ulsan, South Korea.

The Shaheen project, announced in November 2022, is being developed by Aramco affiliate S-OIL and is an important part of Aramco’s regional crude-to-chemicals strategy.

Saudi Arabia and South Korea agreed that the conclusion of the Free Trade Agreement (FTA) between South Korea and the GCC countries will enhance bilateral trade and economic cooperation, state-owned Saudi Press Agency reported, citing a joint statement.

The two countries agreed to work towards the conclusion of the FTA negotiations, it added.