ONGC awards India's largest ethylene project contract to Samsung
24 December 2008
ONGC Petro addition Ltd (OPaL) has awarded a $1.43-billion contract to Samsung Engineering in consortium with Linde (Germany) for building the the country's the first naptha and gas dual-feed ethylene cracker unit, built to produce 1.1 million tons of ethylene and 340,000 tons of propylene per year.
The plant is also the largest plant contract in the hydrocarbon sector in India. Scheduled to be completed during the end of 2012, this lump sum turnkey project will be located in the SEZ notified area in Dahej, Gujarat.
Of the contract value Samsung's share is $960 million and Linde at $470 million.
OPaL is the SPV formed by the Oil and Natural Gas Corporation Limited (ONGC) and Gujarat State Petroleum Corporation (GSPC), together promoting global sized mega petrochemical project in Dahej, Gujarat.
Samsung Engineering Co. Ltd is the first and largest EPC (engineering, procurement, construction) company in Korea and provides a full range of engineering services from feasibility studies, design, procurement, construction to commissioning. .
In 2006, Samsung Engineering established Samsung Engineering India Pvt. Ltd (SEI) as a regional EPC hub office in New Delhi.
President and CEO Yeon-Joo Jung said "Our people have shown strong commitment to innovating new quality-proof and time-saving technologies, accumulating experience, most importantly collaborating with clients to execute projects successfully. Such expertise and efforts were recognized in July of 2008, when our company successfully completed another ethylene plant in the Middle East with a capacity of over 1 million ton, finishing approximately 1-2 months ahead of schedule. This continued growth of Samsung Engineering along with Samsung Engineering India gives me confidence in our company's path to being a top EPC player."
In addition, the new award highlights the expansion of Samsung Engineering's overseas business with the addition of another major client to its portfolio.