aewoo E&C Wins LNG Plant Construction Orders Worth USD 278 Million from Algeria

abarrelfullabarrelfull wrote on 26 Mar 2014 12:38

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Daewoo Engineering and Construction Co, Ltd. (Daewoo E&C) has already made a strong start to 2009 by winning consecutive overseas construction orders.

In addition to receiving the construction order for the 190 million dollar KLCC Tower construction project from Malaysia in January, Daewoo E&C won the order for the construction of LNG Plant Train 1 with a capacity of 4 million tons of LNG per annum, for which it held a contract signing ceremony on February 18 (local time).

Sonatrach, the Algerian national oil corporation, placed the order for the construction of the LNG plant, which will be built in Arzew Industrial Zone in the Algerian city of Arzew. Arzew is about 350 kilometers west of Algiers, the capital of Algeria. The main contractor is a consortium composed of Italy's Saipem and Japan's Chiyoda. Daewoo E&C will be in charge of construction for Saipem.

The project is worth USD 278 million, and the construction period will be about 27 months.

● Daewoo E&C wins a total of USD 1.3 billion of project orders from Algeria since entering the market in 1989

● Algeria emerges as the main market for Daewoo E&C, and the company expects to win additional orders related to Algeria's 4.8 billion dollar Buinan New City Development Project

Daewoo E&C first entered the Algerian market by building a hotel in Algiers in 1989, which it also operated until 2002. It re-entered the market in 2008, and consecutively won a number of major projects, including the 620 million dollar Algeria-Oman Fertilizer Plant and the 290 million dollar groundwork project to build a new city in Boughezoul, Algeria. With the order for the construction of Arzew LNG Plant, Daewoo E&C's orders for 2008 and 2009 have now reached about USD 1.2 billion. Recently, Daewoo E&C formed a consortium with Korean construction companies, and has been spearheading the 4.8 billion dollar Buinan New City Development Project in the Algerian province of Blida. As a result of these efforts, Algeria has emerged as the main market for Daewoo E&C.

Algeria's total land mass is 2.38 million ㎢, ten times that of the Korean peninsula. The country is blessed with abundant natural resources, including crude oil reserves that are estimated at 12.2 billion barrels, the 14th largest crude oil reserves in the world, and a 4.55 trillion m³ reserve of natural gas, the 9th largest in the world. The country has posted annual economic growth of 5 to 6 percent since 2003. Under the leadership of the Algerian government, the country is now actively working to establish a stronger social infrastructure with its oil revenues. For this reason, demand for plant construction and civil engineering projects is expected to continuously increase, which is good news for Daewoo E&C.

Daewoo E&C won the Arzew LNG Plant project on the strength of its technological prowess and its experience in the construction of LNG plants, in the integration of plant technologies, and its experience with projects around the world, including LNG plants 1, 2, 3, 5, and 6 in Nigeria LNG plants in Sakhalin, Russia and an LNG Tank in Yemen. With the receipt of the Arzew order, Daewoo E&C has once again been recognized as a global LNG plant constructor, and gained the upper hand in the competition for subsequent plant orders from Algeria.

● Daewoo E&C aims to set a new record (USD 4.4 billion) for its overseas projects in 2009 by leveraging its strengths in plant construction

Daewoo E&C aims to set a new record for its overseas projects in 2009 by receiving USD 4.4 billion worth of orders, the highest amount since its establishment. To achieve this, Daewoo E&C is actively working to win large-scale projects in the areas of LNG, and power generation plants, which are areas in which it holds technological competitiveness and ample experience, focusing on core regions including Nigeria, Libya, and Algeria.

Overview of Arzew LNG Train 1 Construction Project

  1. Order placed by: Sonatrach (Algerian National Oil Corporation)
  2. Contractor: Saipem (Italy)
  3. Location: Arzew Industrial Zone, about 350 kilometers west of Algiers, the capital of Algeria
  4. Project Overview: Construction of LNG Plant Train 1 with a capacity of 4 million tons of LNG per annum
  5. Project Budget: USD 278 million
  6. Project Period : November, 2009 ~ January, 2012 (about 27 months)

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