[Source: Hyundai Engineering Co.]
South Korea’s Hyundai Engineering Co. has bagged a $100 million order to expand a hydrocracking unit at Balikpapan refinery in Indonesia.
The latest order is the third deal that the Korean industrial plant builder has won from Indonesia’s state-run PT Pertamina in connection with the Southeast Asian country’s $3.97 billion Refinery Development Master Plan project.
The subproject of ramping up capacity of the hydrocracking unit at Balikpapan refinery plant is worth $170 million, and Hyundai Engineering owns a 58.8 percent stake, worth $100 million, in the order.
A hydrocracking unit, or hydrocracker, is process equipment that uses hydrogen and a catalyst to break down heavy crude oil molecules into various products like naphtha. After expansion, the hydrocracking unit at Balikpapan refinery will be capable of processing 60,000 barrels per day, up from current 55,000 barrels.
In September last year, Hyundai Engineering secured a contract to provide engineering, procurement, and construction for Pertamina’s Balikpapan Refining Development Master Plan project of upgrading and modernizing the refinery in East Kalimantan Province, where Indonesia will build a new capital.
Hyundai Engineering is rapidly expanding its global footprint. The company clinched a gas plant front-end engineering design (FEED) project in Malaysia in April, and another FEED order for an oil and gas plant in Europe last month.
On Monday, shares of Hyundai Engineering & Construction, Hyundai Engineering’s affiliate and largest shareholder, gained 1.39 percent to 32,750 won ($27.65) in the morning. Hyundai Engineering is not listed.
By Lee Han-na and Cho Jeehyun
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