A methanol plant capable of producing 5,000 tonnes a day, will be build in Bintulu.
KUCHING (Dec 1): Samsung Engineering has announced that it has received a Letter of Intent (LOI) for a USD1.07 billion (RM4.36 billion) contract to build a methanol plant in Bintulu, which will be capable of producing 5,000 tonnes a day.
It said yesterday that it received LOI from Sarawak Petchem Sdn Bhd, adding that it had won the contract for the Front End Engineering Design (FEED) from Sarawak Petchem in April 2019 and the first early work contract in November 2019.
Samsung Engineering’s excellent FEED execution led to the award for this Engineering, Procurement and Construction (EPC) contract, it said in a statement on its website.
“Samsung Engineering executed the Sarawak Petchem Methanol plant project from a feasibility study, FEED contract, early work phase, to a Licensor, Engineering, Procurement, Construction and Commissioning (LEPCC) contract with this LOI, effective from late January 2021.
“The plant will use Air Liquide’s technology and is expected completion in late 2023,” it said.
The Korean company said it saw the project as an opportunity to develop the market in Sarawak, which has large gas reserves in Malaysia, and create a promising position for future projects in the region.
Samsung Engineering President and CEO Sungan Choi said in the statement: “We were able to receive this landmark project from Sarawak Petchem, by showing our exceptional engineering capabilities and commitment made during the FEED stage.”
“Samsung Engineering has an excellent track record for petrochemical plants and in Malaysia, which will insure optimal project execution, while earning the trust of the client for many future joint projects to come.”
Samsung Engineering is one of the world’s leading EPC and project management companies.
The Borneo Post has reached out to Sarawak Petchem Sdn Bhd chairman Tan Sri Datuk Amar Abdul Aziz Husain for comments.
Chief Minister Datuk Patinggi Abang Johari Tun Openg had officiated at the earth-breaking ceremony for the methanol plant at KM3 Jalan Similajau in Tanjung Kidurong, Bintulu on Sept 12, 2019.
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