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| Daewoo E&C and SK E&C ink a deal with Korea Energy Terminal to construct LNG plant in Ulsan at the Plaza Hotel in Seoul, on June 26. From right, Daewoo E&C President Kim Hyung, Korea Energy Terminal President Moon Byung-chan, SK E&C President Ahn Jae-hyun. Courtesy of Daewoo E&C |
By Kim Hyun-bin
Daewoo E&C and SK E&C signed a deal with the Korea Energy Terminal, Friday, to construct the first stage of a petroleum and liquefied natural gas (LNG) terminal at Ulsan.
Starting July 2020 through June 2024, Daewoo will construct a 215,000 kiloliter LNG tank at Ulsan along with additional facilities including a 1 million ton evaporation facility. Daewoo E&C and SK E&C established a joint venture to oversee and develop the blueprints, procurement, construction and trial runs as the original contractor.
The construction expenses are estimated at 324.3 billion won, of which Daewoo will be responsible for 51 percent and SK will take 49 percent of the cost.
Numerous major large construction companies took part in the bidding going through fierce competition in the design, technicality and price categories. However, through Daewoo and SK's knowledge, especially in execution, planning and compatibility, the two outscored their competitors in the bidding process.
Daewoo E&C has inked numerous deals with the Korea Gas Corporation for the building of 22 LNG tanks in locations including Incheon, Tongyeong and Pyeongtaek. It also collaborated to successfully construct 2 overseas LNG tanks in Yemen. Through the construction experience, Daewoo has been recognized as having the best technology and expertise in the LNG plant sector.
SK E&C is also known for its superior EPC capacity within the LNG field and has been successfully operating the Boryeong LNG terminal, which it oversaw the blueprint, procurement, construction and test runs of the plant.
The company has constructed four LNG terminals in Boryeong that are currently in operation, while two additional terminals are under construction.
The construction industry expects the demand for LNG plants in the country to continuously rise in the future.
Daewoo has procured a deal to construct an LNG liquefied gas plant in Nigeria and with the firm's global competitiveness in the industry many experts believe there is a high possibility additional procurements will come from overseas in the future.
Daewoo has set the LNG plant sector as the company's new growth engine and plans to actively take part in LNG tank biddings in the country.
"Even during the COVID-19 pandemic where gas prices plummeted and created difficult situations, Daewoo E&C has established positive relations with LNG plant clients and has been recognized for the company's superior technical skills and experience," a Daewoo E&C official said.
"Ulsan Metropolitan City has shown substantial growth in the heavy chemical industry including car, ship and chemical manufacturing and recently have been developing into the northeast Asia energy network base. Since the early 90s when Daewoo E&C entered the Ulsan market, it has successfully constructed S-Oil's oil-refining facilities and pipelines.
Through the experience the company is closely cooperating with local society and clients and ensures safety and promises to complete construction without flaws."
"Even during the COVID-19 pandemic where gas prices plummeted and created difficult situations, Daewoo E&C has established positive relations with LNG plant clients and has been recognized for the company's superior technical skills and experience," a Daewoo E&C official said.
"Ulsan Metropolitan City has shown substantial growth in the heavy chemical industry including car, ship and chemical manufacturing and recently have been developing into the northeast Asia energy network base. Since the early 90s when Daewoo E&C entered the Ulsan market, it has successfully constructed S-Oil's oil-refining facilities and pipelines. Through the experience the company is closely cooperating with local society and clients and ensures safety and promises to complete construction without flaws."
