Hyundai Engineering has won an additional construction order for the Balikpapan refinery project in Indonesia.
The company announced on Feb. 27 that it has signed a $360 million contract to install additional sulfur recovery unit (SRU) and hydrogen manufacturing unit (HMU) at its Balikpapan refinery in Indonesia. Of the total, Hyundai Engineering has a stake of about $230 million, or 64.6 percent, in the project.
SRU is a facility that recovers sulfur from hydrogen sulfide (H2S) generated during the refining process of crude oil, and hydrogen production facilities produce high purity hydrogen and supply it to the refinery facilities.
The order was awarded to Hyundai Engineering that was highly recognized for its high technology power and management ability by PT PERTAMINA, the owner of the Balikpapan refinery project, which has been carried out by Hyundai since September last year.
Hyundai Engineering has succeeded in winning the latest additional construction order following the mega Balikpapan refinery project valued at $4 billion, strengthening its high profile in Indonesia's oil and petrochemical plant market, which is rapidly growing as a dominant player in Southeast Asia.
In particular, the Balikpapan refinery is located near Kalimantan, the site of Indonesia's new capital, and is expected to have a positive impact on future orders for projects related to the relocation.
The Balikpapan refinery project, coupled with the relocation of the Indonesian capital, is expected to play a very important role in Hyundai Engineering's further expansion into Indonesia, a Hyundai Engineering official said.
Starting with this year's additional Balikpapan oil refinery project, Hyundai Engineering plans to establish a balanced portfolio of overseas orders to solidify its position as the top builder of overseas orders in Korea.
