South Korea’s Samsung Engineering has been awarded a letter of intent for a $1.07 billion contract to construct a methanol plant for Sarawak Petchem in Sarawak, East Malaysia.
Samsung will build the 5000 tonnes per day methanol production facility in Bintulu, which will use Air Liquide’s technology. Completion of the facility is expected in late 2023.
The South Korean contractor believes this award affords it the opportunity to develop gas-related industries in Sarawak, which has large gas reserves.
Samsung had earlier performed the feasibility study and front-end engineering and design work for Sarawak Petchem’s methanol plant project and now expects the LoI will translate into a licensor, engineering, procurement, construction and commissioning contract effective from late January 2021.
“Samsung Engineering has an excellent track record for petrochemical plants and in Malaysia, which will ensure optimal project execution, while earning the trust of the client for many future joint projects to come,” said Samsung Engineering chief executive Sungan Choi.
The contractor is targeting new projects that will enable it to combine FEED work with technology advancements that will lead to full EPC contracts.