South Korea’s Hyundai Engineering and Construction, along with Hyundai Engineering, have entered into a $2.4B contract with the Saudi Arabian oil giant, Saudi Aramco, to construct a gas processing plant, as announced by Seoul’s presidential office on Tuesday.
The agreement was formally signed in Riyadh on Monday as part of the 50th-anniversary celebration of construction collaboration between the two nations. South Korean President Yoon Suk Yeol was present during his state visit to Saudi Arabia.
The two construction firms, both affiliates of the Hyundai Motor Group, have been engaged in the initial phase of Aramco’s Jafurah gas processing project since securing the contract in 2021. Hyundai has now confirmed the signing of a $2.4B contract for the second phase.
Jafurah: Massive Gas Reserves for Saudi Aramco’s Ambitious Production Goal
Jafurah is Saudi Arabia’s largest unconventional non-oil associated gas field, with estimated reserves of 200 trillion cubic feet (5.7 trillion cubic meters) of raw gas. Aramco has stated that daily production could reach around 2 billion cubic feet by 2030.
In a joint statement following discussions, President Yoon and Saudi Crown Prince Mohammed bin Salman expressed their approval of the agreement and pledged to enhance collaboration in construction and infrastructure, including projects related to Saudi Arabia’s NEOM mega-city and Vision 2030 reform plans.
The joint statement also called for increased efforts to prevent the escalation and spread of the conflict in Israel, urging both sides to refrain from targeting civilians and facilitate the rapid and unhindered delivery of humanitarian aid, according to Gulf Business.
During Yoon’s visit, South Korea’s state-run Korea National Oil secured a storage agreement with Aramco, enabling the Saudi company to store 5.3 million barrels of oil in South Korea’s reserve facilities at the port of Ulsan for a period of five years.
Following a four-day stay in Riyadh, Yoon departed for Doha on Monday, where he is set to attend an international horticultural expo and hold a summit on Tuesday with Qatar’s Emir, Sheikh Tamim bin Hamad al-Thani, as reported by his office.