Hyundai scoops $1,200 million South Pars deal

22 March 2002

South Korea's Hyundai Engineering & Construction Companyhas been awarded the estimated $1,200 million contract to build onshore gas treatment facilities for phases 4 and 5 of the South Pars gas development scheme, the company announced on 18 March. The client on the project is the partnership of Italy's Eniand the local Petroparsthat won the contract to develop the two phases in July 2000 (MEED 21:12:01).

Hyundai, which will carry out the project with several local firms, won the deal against competition from a team led by South Korea's Daelim Engineers & Construction Company, with the local Industrial Development & Renovation Organisation.

The onshore facilities for phases 4 and 5 will be located at Bandar Assaluyeh and will have a capacity to treat 56 million cubic metres a day of gas, together with an associated production of 80,000 barrels a day of condensate. In addition, the plants will treat more than 1 million tonnes a year of liquefied petroleum gas (LPG) and an equal amount of ethane, to be used as feedstock for petrochemical projects. Two 105-kilometre, 32-inch gas pipelines will link the onshore facilities to the South Pars field. Construction is expected to take three years.

The contract is the single largest for Hyundai in Iran so far. The company is working on the estimated $600 million project to set up onshore facilities for phases 2 and 3 of the South Pars development, which are being carried out by a consortium led by France's TotalFinaElf(MEED 4:6:99). The first of four gas trains came on stream in mid January and first gas was pumped into the local grid in early March (MEED 8:3:02). The remaining three units will come on stream before the end of the third quarter, only slightly behind schedule.

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