Samsung Engineering Inks $770M Deal to Build Gas Terminal in Terengganu
Samsung Engineering announced Thursday that it has signed a contract with Petronas Carigali Sdn Bhd (PCSB) and Hess Exploration and Production Malaysia B.V. to build the Terengganu Gas Terminal (TGAST) Development Project in Malaysia for $770 million.
The gas pretreatment facility will be constructed in Kerteh Complex, Terengganu, 161 miles (260 kilometers) northeast of the capital Kuala Lumpur. The plant, which will eliminate impurities such as carbon dioxide (CO2) and hydrogen sulfide (H2S) from natural gas extracted offshore, will be equipped to process up to 700 million cubic feet per day (700 MMscf/d).
Samsung Engineering received the Letter of Award for the project in September. The lumpsum turnkey contract, which covers engineering, procurement, construction, and commissioning, is expected to be completed in June 2016.
“It was the trust built upon the positive project outcomes and affluent experience in gas plant industry that led to the awarding of the contract. We will enhance the partnership with the client by successfully completing the project, and strengthen our position in the Southeast Asian market,” Samsung Engineering’s CEO Park Choong-Heum said in a company release.
PCSB, a subsidiary of Malaysia’s state-owned entity Petronas Nasional Berhad, holds 75 percent interest in the project, with the remaining 25 percent held by Hess Corp.'s unit Hess Exploration and Production Malaysia.
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