Samsung Engineering has signed a $2.76 billion deal to build a natural gas liquids (NGL) liquid complex in Saudi Arabia.
Saudi state-run oil company Aramco awarded the South Korean firm the contract for the complex in Shaybah oil and gas field which will be completed by June 2014.
Samsung Engineering will build the project’s inlet and gas treatment facility, NGL recovery and utility facilities, a cogeneration plant and will upgrade gas handling facilities from existing Shaybah gas oil separation plants (GOSPs).
Industry sources estimate the cost of the project to be between $5-6 billion.
The plant will process 2.4 billion cubic feet per day of low-sulphur sweet gas, sending 264,000 barrels per day of NGLs to a processing plant for fractionation.
It will also produce 750,000 barrels of crude oil.
Shaybah is one of two new Samsung Engineering-Aramco projects to help meet gas demand rising at 5-6 per cent annually in the world's largest oil exporter.
The other is a power plant project in Wasit, which will process gas from the Arabiyah and Hasbah offshore gas fields. It will also be completed by 2014.