Samsung Engineering, announced in a statement that it has received the NoA (Notice of Award) for the FEED (Front End Engineering Design) contract of a PDH, PP, UTOS plant from Alujain National Industrial Co.(LNIC) in Saudi Arabia.

The contract amount is USD 19.428 million and the FEED work is expected to be carried out in Samsung Engineering’s offices in Seoul, Korea until May 2024.

This project will take place at the Yanbu Industrial Complex in Madinah Province, western Saudi Arabia.

This project is to carry out basic design for a propane dehydrogenation (PDH) plant with an annual capacity of 600,000 tons, a polypropylene (PP) plant with an annual capacity of 500,000 tons, and Utilities & Offsite (UTOS) required for the plant.

Samsung Engineering said the key to winning this work was its extensive experience in the PDH, PP field and its competitiveness in the FEED engineering technology market. Alujain has expressed its confidence in Samsung Engineering by awarding FEED after previously awarding Samsung Engineering with the Pre-FEED contract. Samsung Engineering plans to successfully carry out and execute this FEED project and has expressed its intent to win the EPC contract once it is released in mid-2024.

The regional experience in Saudi Arabia is also one part where Samsung Engineering is confident that it will lead to the success of this project. Samsung Engineering executed 32 projects in Saudi Arabia, five of those were PDH, PP projects. In addition, Samsung Engineering expects that it will be able to actively utilize the existing infrastructure and know-how in the region having successfully completed the Luberef lube base oil plant in Yanbu, where this project will be executed.

Hong Namkoong, President and CEO of Samsung Engineering said, “As we are proceeding from the initial Pre-Feed stage to the FEED stage of the project, we are applying all of Samsung Engineering’s innovative technologies.” Further, he added, “Samsung Engineering created a solid business model through its successful implementation of linking FEED to EPC orders, therefore creating another success story for its ‘FEED to EPC’ strategy.”