SNT Energy, Agreement with Saudi Procurement Authority

SNT Energy announced on the 29th that its 100% subsidiary, Saudi Arabian local corporation SNT Gulf, has signed a heat recovery steam generator (HRSG) localization agreement with the Saudi Localization Procurement Authority.

The signing ceremony held the previous day at the main office of the Ministry of Energy in Riyadh, Saudi Arabia, was attended by Ahmad Alzahrani, Deputy Minister of Energy of Saudi Arabia, Abdulrahman bin Abdullah Alsemari, CEO of the Localization Procurement Authority, and other Saudi government officials, as well as Shin Kyung-in, CEO of SNT Energy, and Oh Young-seok, CEO of SNT Gulf.

As SNT Gulf is recognized as the first HRSG company to have HRSG localization capability in Saudi Arabia, SNT Gulf's HRSG will also be listed in the 'Essential Local Purchase Items' that must be purchased locally in Saudi Arabia. The essential local purchase items of the Saudi government are part of a nationalization policy to encourage the localization of domestic industries and promote the development of national key industries, and additional points are given during public bidding for registered companies and products.

Being listed as an essential local purchase item is known to require thorough review and rigorous on-site verification of local companies' investment performance, technical capabilities, and production facilities. In the case of SNT Gulf, the final on-site verification process was completed last April.

Previously, SNT Gulf signed a 'Strategic Long-term Procurement Agreement' for Air Coolers with Saudi state-owned company Aramco in November 2022, and has since made significant efforts to conclude the HRSG localization agreement, including the first plant expansion for local production of nuclear equipment such as HRSG and condensers in January of the following year and the second expansion in January 2025.


bsk730@fnnews.com Byung-seok Kwon