South Korean construction company Hyundai Engineering & Construction (HEC) and Saudi Aramco, the Saudi state-owned oil giant, signed a $2.4 billion deal on October 24, 2023 to construct a gas processing plant in the Jafurah gas field.
The Jafurah gas field is the largest liquid-rich shale gas play in the Middle East, with an estimated 200 trillion standard cubic feet of natural gas. The new gas processing plant will have a capacity to process 2.5 billion cubic feet of gas per day.
The deal was signed during a ceremony marking 50 years of construction cooperation between Korea and Saudi Arabia. South Korean President Yoon Suk-yeol and some 200 businesspeople from the two countries attended the ceremony.
The deal is a significant boost for Hyundai E&C, which has been struggling financially in recent years. It is also a sign of the growing ties between South Korea and Saudi Arabia.
The Jafurah gas field is expected to play a major role in Saudi Arabia’s plans to increase its natural gas production and reduce its reliance on oil. The new gas processing plant will help Saudi Aramco to develop the Jafurah gas field and meet the growing demand for natural gas in the domestic and international markets.
The deal is also a positive development for South Korea, which is heavily dependent on imported energy. The new gas processing plant will help South Korea to secure a stable supply of natural gas and reduce its energy costs.
Overall, the deal is a win-win for both South Korea and Saudi Arabia. It is a sign of the growing economic ties between the two countries and their commitment to developing the natural gas sector.