Key Points:
- Samsung Engineering and GS E&C secure a $7.2 billion contract for the Fadhili Gas Increment Program in Saudi Arabia.
- This contract represents the largest construction project ever awarded to a South Korean company in Saudi Arabia.
- The South Korean Presidential Office views this achievement as a testament to the strong diplomatic ties between South Korea and Saudi Arabia.
- Analysts express optimism regarding the attainment of this year’s ambitious $40 billion order target, reflecting a substantial increase from $33.3 billion in 2023.
Samsung Engineering (now known as Samsung E&A) and GS Engineering & Construction Corp. (GS E&C) have won a $7.2 billion contract for the Fadhili Gas Increment Program in Saudi Arabia. This contract marks the largest construction project ever awarded to a South Korean company in the kingdom.
Saudi Arabian Oil Co. (Aramco) granted Samsung Engineering and GS E&C the prestigious engineering procurement construction (EPC) contracts for the Fadhili Gas Plant increment project. Surpassing the $5 billion Amiral project awarded in June of the previous year, this achievement ranks as the third-largest international construction order in the history of South Korean corporations.
The South Korean Presidential Office hailed this milestone as a testament to the robust diplomatic relations between South Korea and Saudi Arabia. A significant diplomatic engagement occurred in November 2022, as President Yoon Suk Yeol held discussions with Mohammed bin Salman Al Saud, the Crown Prince and Prime Minister of Saudi Arabia. Both leaders affirmed their commitment to elevating their bilateral relationship to a future-oriented strategic partnership, focusing on large-scale economic cooperation in infrastructure.
Further strengthening their commitment, a state visit to Saudi Arabia in October of the preceding year resulted in a joint statement to enhance cooperation in the construction and infrastructure sectors. This recent contract has significantly bolstered South Korea’s total overseas construction orders for the year to $12.7 billion, doubling from the $6.1 billion recorded during the same period in the previous year.
Analysts express optimism regarding the attainment of this year’s ambitious $40 billion order target, reflecting a substantial increase from last year’s total of $33.3 billion in overseas construction orders. The government reaffirms its dedication to supporting various global projects, encompassing petrochemical facilities, railway systems, and desalination projects.
