|LG International Corp.-Hyundai Engineering Completion of the Turkmenistan Oil Refinery|
|Date : 2015-10-13 | View : 53,927|
LG International Corp. – Hyundai Engineering Completion
LG International Corp. has announced completion of the project to modernize the Turkmenbashi Oil Refinery. The completion ceremony was held at the plant on the 9th.
The ceremony was attended by Oil and Gas Vice Prime Minister Baymyrat Hodjamuhammedov, other high-ranking Turkmenistani government officials, LG International CEO Song Chi-ho, Hyundai Engineering President Kim Wi-chul, and other senior South Korean businessmen.
The project site is located at Turkmenbashi, some 500 km northwest of the capital city of Ashkhabad. The consortium of LG International and Hyundai Engineering won the project in 2012 from Turkmenistan’s state-owned oil refining company for $464 million. Built in 1943, the dilapidated refinery had become inefficient, but the revamping will turn it into a modern facility that will annually produce 2.3 million tons of premium high-octane gasoline.
The project is the 2nd by the consortium of the two South Korean companies – the previous project was the $1.3 billion Galkynysh Gas Desulfurization Facility completed in September 2013. This current project is considered to be an opportunity to strengthen the companies’ foothold in the petrochemical market in Turkmenistan.
Since its entry into Turkmenistan in 2009, LG International Corp. has been active in making inroads into the Central Asian plant market to explore new markets and diversify its market reach. As the result of such efforts, a total of seven plant projects are in place, including the completed Galkynysh Gas Desulfurization Facility, and the project to modernize the Turkmenbashi Oil Refinery – with a combined total value of over $10 billion.
Thanks to President Park Geun-hye’s visit in June last year and Turkmenistani President Gurbanguly Berdymukhammedov’s return visit in April this year, new projects by the two companies include a $3.9 billion ‘natural gas-to-liquid plant,’ a $940 million ‘2nd project for oil refinery modernization,’ and a $2 billion ‘No. 2 gas petrochemical plant’ (for which an MOU was signed). The increasing momentum is opening a new chapter in the success story, through active support from the two governments.
Based on such achievements, LG International has set up a strategy – by building a stronghold to actively seek new projects – to win plant construction projects, not just in Turkmenistan but also elsewhere in Central Asia, where there is ample potential to develop natural resources such as oil and gas.
Turkmenistan has been implementing mid- and long-term development plans to massively expand its industrial infrastructure by 2030. LG International will actively seek further project opportunities in connection with these development plans.
<The Turkmenistan Plant Project by the LG International–Hyundai Engineering Consortium>
<View of the Turkmenbashi Oil Refinery>
<Site Map of the Turkmenbashi Oil Refinery Modernization Project>