$882 Million Contract Samsung Engineering to Build Two Petrochemical Plants in Malaysia

Editor: Dr. Jörg Kempf

Samsung Engineering received an LOA (Letter of Award) for the Malaysia RAPID (Refinery and Petrochemical Integrated Development) package 11 EO/EG (ethylene oxide/ethylene glycol) project and package 6A LLDPE project. Read the details ...

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Location of the Malaysia RAPID Project
Location of the Malaysia RAPID Project
(Picture: Samsung Engineering)

Seoul/South Korea – Samsung Engineering has been awarded by PRPC Glycols and PRPC Polymers respectively, wholly owned subsidiaries of Malaysian national oil company Petronas’ petrochemical entity, Petronas Chemicals Group Berhad.

The RAPID package 11 project is worth approximately $577 million and will have a capacity of 740,000 MTPA of ethylene glycol based on Shell Global’s technology. The scope for this plant also includes EO/EG Tank Farm as well as Tank Truck Loading Rack and Drumming Warehouse.

The contract value of the package 6A LLDPE plant is approximately $305 million US Dollars and has a capacity of 350,000 MTPA. The LLDPE uses the license from Ineos Technologies and the scope of work includes a Polymers Tank Farm.

The two plants are located in Pengerang, southern Johor, Malaysia. Both projects are on a lump-sum-turn-key basis, which include design, engineering, procurement, construction and commissioning, and are set for completion in 2019.

Choong Heum Park, President and CEO of Samsung Engineering said: “We have successfully worked and completed projects for the client hand in hand in Malaysia, Vietnam and Thailand.” He added, “I expect great synergies to be created while working on the projects thanks to our excellent relationship with Petronas and expect the partnership to be even stronger after the successful completion of these two projects.”

With its successful track record of 14 world-class EO/EG plants, four of which were based on Shell Global’s technology, and its know-how in LLDPE plants acquired in India, Egypt and UAE, Samsung Engineering is positive about delivering safe and efficient plants in Malaysia for Petronas.

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