Hyundai Engineering has signed a contract with Indonesia’s state-run oil company PT Pertamina to provide a front end engineering design (FEED) for the TPPI Olefin Complex Project.
Samsung Engineering also signed a FEED contract for the same project. Therefore, it will be inevitable for the two companies to compete for an engineering, procurement, and construction (EPC) contract for the project.
The project involves building a big petrochemical complex in Tuban of Java Island, Indonesia, to produce 700,000 tons of high density polyethylene (HDPE) and linear low density polyethylene (LLDPE), 300,000 tons of low density polyethylene, and 600,000 tons of polypropylene (PP) through a naphtha cracking center (NCC) with an annual production capacity of one million tons a year, Hyundai Engineering said.
The total project budget is estimated at won 4.8 trillion, the highest among Indonesian petrochemical plant projects.
Hyundai Engineering said that it has formed a consortium with Italian company Saipem and a local Indonesian company to carry out the FEED work, adding that it has secured a strong position to win the EPC contract to be placed next year.
Samsung Engineering has teamed up with Technip of France and Indonesian local company Tripatra.
Industry observers expect that the client will choose one of the basic designs from the two consortiums. The EPC contract is likely to be awarded to the consortium that provided the winning FEED.