Daewoo Engineering & Construction (Daewoo E&C) announced on May 14 that it has signed the main engineering, procurement and construction (EPC) contract on the Nigeria LNG Train 7 project.
The company will build a plant that can produce 8 million tons of LNG and additional facilities.
Daewoo E&C set up a joint venture with global construction companies Saipem and Chiyoda, and will carry out all tasks including design, purchase, construction, and test operation as the main contractor, not a subcontractor. The total contract amount is 5.18 trillion won, with Daewoo E&C's share amounting to about 40 percent or about 2.07 trillion won. The construction period is 66 months long.
This agreement is significant for Daewoo E&C as the company has secured the position of a main contractor in the LNG liquefaction plant EPC market, which has been dominated by only a few global construction companies.
Daewoo E&C faced fierce competition with other competitors in the process of an FEED evaluation, a technology evaluation, and a tender price evaluation. However, it could clinch the main contract based on its track record of constructing five of the six current NLNG trains, abundant project experience, and an implementation plan tailored to the local conditions.
Since its entry into Nigeria in 1978, Daewoo E&C has successfully completed more than 70 projects to date and occupies an overwhelming position among Korean builders in Nigeria. Through the construction of the five LNG units, the contractor earned strong trust from the clients.
The Korean construction industry is expecting an increase in LNG plant projects in overseas markets in the future. Daewoo E&C has global competitiveness in liquefaction plants, vaporization and storage facilities as it has built 10 of the 90 liquefaction plants now in operation around the world.
In April, Daewoo E&C signed a contract on Phase 2 of the Tangguh LNG Liquefaction Plant Expansion Project in Indonesia. In addition, the company is expected to land the main contract on LNG Area 1 in Mozambique and order for an NFE liquefaction plant in Qatar.
