Hyundai E&C, which has carried out more than 850 projects in 62 countries around the world, has recently delivered good news from Saudi Arabia. Hyundai E&C signed a strategic partnership with the world's largest energy provider and Saudi state-run oil and natural gas company, Aramco, on July 5, securing a solid foothold in the Middle Eastern market. Hyundai E&C was selected as an EPC (Engineering, Procurement, and Construction) partner in the Namaat program, a mid-to long-term growth project promoted by Aramco, winning over global leading constructors, and showcased the power of K-Construction.
[ On July 5, Hyundai E&C President Yoon Young-joon and Aramco Vice President Abdulkarim Al Ghamdi are taking a commemorative photo after the signing ceremony. ]
Such feat was attributable to Hyundai E&C’s long-standing trust built with Aramco. The relationship between the two firms dates back to 1979. Starting with the Yanbu NGL Sea Terminal Project, Saudi Arabia's major industrial infrastructure has been completed with Hyundai E&C’s construction know-how and technology. Let us take a look at Hyundai E&C’s flagship projects implemented on the back of on-going strong partnership with Aramco.
[ Location map of Aramco's flagship projects in Saudi Arabia implemented by Hyundai E&C (Blue-Completed Project / Green-In Progress Project) ]
Daily processing of 550 million cubic of natural gas & daily output of 70,000 barrels of natural gas liquids
Khurais Central Processing Facilities, Saudi Arabia (completed in 2009)
In Khurais, 200 kilometers northeast of the Saudi capital Riyadh, a huge plant that Hyundai E&C constructed in 2006 stands tall. The facility, which can process 550 million cubic feet* of natural gas and produce 70,000 barrels* of liquefied natural ga s(LNG) per day, drew a lot of attention as many leading global builders took part in the bidding. The production volume is equivalent to 9 percent of Korea's natural gas consumption (2.29 trillion cubic feet, published by BP) last year.
At that time, it was even difficult to take part in the bidding of the Aramco project because it was not easy to get the PQ (pre-examination of bidding qualification) approval. However, Hyundai E&C beat out its prominent competitors to win a $780 million construction project. Aramco, impressed by Hyundai E&C’s rigorous safety, process, and quality management from the beginning of the construction, also developed a joint slogan called "Together we are winners." At that time, the Khurais Central Processing Facilities site also became a must-visit course for the managers of projects ordered by Aramco.
*Barrel : Basic unit of measurement for the volume of crude oil. An expression derived from a barrel containing crude oil. About 159 liters equals one barrel.
* SCF (Standard Cubic Feet) : Basic unit of measuring the volume of natural gas. Approximately 28 liters are equivalent to one cubic feet in an environment of 15 degrees Celsius
Daily processing of 1.8 billion cubic feet of natural gas
Karan Gas Facilities, Saudi Arabia (completed in 2012)
Hyundai E&C, having successfully completed the Khurais Central Processing Facilities in 2009, won the Saudi’s Karan Gas Facilities Project in the same year. Hyundai E&C’s phase was the most important in terms of scale and process among all Karan programs (four packages). Even though there was a competitor which submitted the lowest price at the time of the bidding, Aramco chose Hyundai E&C ($1.42 billion). Currently, 1.8 billion cubic feet of natural gas are produced here on a daily basis, which can cover about 30% of Korea's natural gas consumption last year.
In particular, the Saudi’s Karan Gas Facilities has achieved a total of 28.22 million 145 hours of zero accidents since breaking ground in March 2009 thanks to its thorough site management. It was a significant achievement made amidst the challenging environment, where an average of 7,000 workers simultaneously worked at the site every day.
Daily recovery of 1.4 billion cubic feet of gas as natural gas liquids
Uthmaniyah Ethane Deep Recovery Facility, Saudi Arabia (completed in 2019)
Uthmaniyah is located about 325 kilometers east of the Saudi capital Riyadh. A a new plant constructed by Hyundai E&C proudly sits here, next to old facilities which have been operational for more than 40 years. The project, completed in 2019, involved construction of the Saudi Uthmaniyah Ethane Deep Recovery Facility that separates 1.4 billion cubic feet of gas a day into natural gas liquids such as ethane and propane. On the back of Aramco's trust, Hyundai E&C beat Petrofac in the UK and Tecnicas Reunidas in Spain to finally win the project ($746 million).
Hyundai E&C’s construction know-how and technology gained more spotlight at the site. Korea’s leading builder succeeded in installing two demethanizers - core equipment weighing 820 tons and 75 meters high - in four hours via Tandem Lifting using two cranes, and applied the ConXtech method* to a part of the Aramco project for the first time. At the time, Aramco's head of the gas operation division said, "Hyundai E&C is the first to complete such a difficult construction at once without modification," and in awe, sent a letter of appreciation thanking everyone involved in the project.
* ConXtech Method: Method of modularizing and assembling structures. It is a design, minimizing use of materials and is evaluated to show higher construction productivity than conventional construction
Facility for separating and processing 300,000 barrels of crude oil and gas per day
Marjan Increment Program PKG 6 & Marjan Increment Program PKG 12, Saudi Arabia (Scheduled to be completed in 2024)
Hyundai E&C’s two projects are currently underway simultaneously in the offshore oil field of Marjan, located about 250km northwest of Dammam in eastern Saudi Arabia. In July 2019, Hyundai E&C signed a contract for Package 6 and Package 12 of the Saudi Marjan Development Program worth a total of $2.7 billion. The project is to expand an existing plant to separate and process 300,000 barrels of crude oil and gas per day (Package 6), and an auxiliary facility that supplies utilities needed for gas processing plant with capacity of 2.5 billion standard cubic feet per day (Package 12).
Hyundai E&C has incorporated its know-how from the design phase and laid the foundation for flexibly handling difficulties in the process, by mobilizing employees with experience in Aramco construction projects. Currently, Package 6 site is working on the construction of a GIS(Gas Insulated Substation), installation of civil engineering foundation concrete and steel structure, and Package 12 site is constructing a combustion gas diffusing tower, air separator, and a cooling tower.
Lee Moon-young, Execution Team Leader
In an Aramco project, known to be quite demanding, “trust” is more important than anything else. And trust seems to come from “implementation ability.” Our site is doing its best not only to establish a preliminary plan in terms of mobilizing workers, manufacturing materials, and operating equipment, but also to gain an upper hand in performance based on individual technology. In the past, construction of the Uthmaniyah Ethane Recovery Plant was complex and challenging for the site, but all employees worked together to complete the construction as scheduled. Building on our experience of having received a letter of appreciation from the client for meeting the construction deadline, our site will also successfully carry out the project in time to demonstrate Hyundai E&C’s power again.
Lim Jae-yong, Administration Team Leader
Hyundai E&C is embedded with an unrivalled “Aramco DNA”, as a result of a long-standing collaboration with Aramco. I feel the power of Hyundai E&C every time a project is carried out. For example, in the early days of the project, the “Stone Column” construction work, which involves filling the aggregate by creating a 6m deep hole in the existing factory, was complicated. However, the site was able to complete the tough construction safely through tight process management and close cooperation while overcoming the risks which could have resulted in the suspension of the construction. In addition, for the first time in an Aramco project, we are doing our best to strengthen safety awareness by establishing the Advanced Safety Training Center, benchmarking our Daelimdong Safety Experience Center. Aramco executives, who saw this for the first time, thanked us saying that “Hyundai never disappoints.” In the future, we will demonstrate Hyundai E&C’s distinctive performance ability through the Marjan project. As our seniors did in the past, we will successfully complete the construction within the deadline, as promised to the client.
Saudi Arabia's First Shale Gas Project
Jafurah Utilities, Sulfur and Interconnection Systems, Saudi Arabia (to be completed in 2025)
In Al-Hofuf, about 150km southwest of Dammam in eastern Saudi Arabia, the Jafurah Utilities, Sulfur and Interconnection Systems Project is set to kick off its construction. The site is currently building a temporary housing facility that can accommodate 6,500 workers and working on site development with the aim of receiving the NTP(Notice to Proceed) in September.
The construction, which was awarded to Hyundai E&C and Hyundai Engineering as a team, is Saudi Arabia's first shale gas project (total construction cost of $1.65 billion) under development by Aramco. In particular, Jafurah, where the site is located, is the largest shale gas production field in Saudi Arabia, and is expected to boast the world's third-largest gas production capacity upon the project completion.
Hyundai E&C won the construction project in November 2021 in recognition of its outstanding technology and project management capabilities. The project includes building a SRU(Sulfur Recovery Unit) and auxiliary facility among gas processing facilities that filter out impurities from shale gas and produce clean gas. The key facilities, SRU (Sulfur Recovery Unit) and TGTU (Tail Gas Treatment Unit), are cutting-edge facilities that recover and recycle high-purity sulfur from hydrogen sulfide generated during the crude oil refining process, and investment in related facilities is growing for sulfur recycling and environmental protection, leading to more expectations in winning relevant projects in the future.
Kim Dong-ryoong, Project Manager of Jafurah Utilities, Sulfur and Interconnection Systems Site
As it is the first project in Saudi Arabia for which Hyundai E&C and Hyundai Engineering are collaborating, we are doing our best to maximize synergy from the outset, in terms of arranging optimal organization or consulting on the project scope. All employees will advance forward, committed to the slogan of “We are one team”, so that Saudi Arabia's first shale gas project can be recorded as another success story for Hyundai E&C.