Samsung E&A, GS E&C stocks gain on $7.2bn gas plant order from Aramco

2024.04.03 10:47:01 | 2024.04.03 10:47:16

Saudi Arabia‘s Padili gas plant industrial complex. [Photo by GS E&C]이미지 확대

Saudi Arabia‘s Padili gas plant industrial complex. [Photo by GS E&C]



Shares of Samsung E&A Co. and GS Engineering & Construction Corp. (GS E&C) gained ground on Wednesday morning following reports that they have been awarded engineering, procurement and construction (EPC) contracts worth $7.22 billion by Aramco for the expansion of the Fadhili Gas Plant in Saudi Arabia.

Shares of Samsung E&A were trading 5.88 percent higher at 26,100 won ($19.3) as of 10:30 a.m. while those of GS E&C rose 5.34 percent to 15,780 won.

The rise was led by the announcements that the companies were awarded contracts for development of Fadhili Gas Plant Increment in Saudi Arabia.

Samsung E&A secured a contract worth $6 billion and GS E&C $1.22 billion.

Photo taken after signing the Saudi Alcova contract on the 2nd (CEO of GS E&C, left, Vice President of Aramco Wu Yahya Abushal). [Photo by GS E&C]이미지 확대

Photo taken after signing the Saudi Alcova contract on the 2nd (CEO of GS E&C, left, Vice President of Aramco Wu Yahya Abushal). [Photo by GS E&C]



According to Samsung E&A on Wednesday, it signed an agreement with Aramco, Saudi Arabia’s state oil giant, for the expansion program’s packages No. 1 and No. 4.

The packages involve building a gas processing facility and creating utility and additional facilities. The construction will allow daily processing capacity to go up to 3,800 million standard cubic feet per day (MMSCFD) from 2,500 MMSCFD.

GS E&C also disclosed Wednesday that it has won an order from Aramco for the program’s package No. 2 that involves building a sulfur recovery processing facility.

The facility captures and recycles sulfur generated during the gas purification process. Sulfur is considered a toxic substance contained in the gas produced from refining. Managing sulfur helps reduce environmental pollution.

By Pulse

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