Samsung E&A’s Chemical Business Is Still Going Strong...Another KRW 5 Trillion Qatar Order After KRW 4.7 Trillion Saudi Award?

[Financial News] KRW 4.7 trillion. That is the value of the large-scale fertilizer plant EPC contract won by Samsung E&A in Saudi Arabia. The company has focused on growing its advanced industries and new energy businesses to expand its reach and stabilize earnings. However, its traditional core business, chemical plant engineering, continues to deliver solid results. Although the share of advanced industries and new energy is expected to grow over the long term, the chemical business is unlikely to lose its role as a key pillar. Expectations are already building that Samsung E&A could secure another large order in Qatar.
According to industry sources on the 13th, Samsung E&A held a signing ceremony on the 9th local time at the headquarters of SABIC Agri-Nutrients Company in Jubail, Saudi Arabia. Under the agreement, Samsung E&A will carry out the EPC work alone for the SAN-7 fertilizer plant, which is scheduled for completion in 2030. The facility will produce 3,500 metric tons of ammonia per day from natural gas and use it as feedstock to produce 7,700 metric tons of urea fertilizer. All of the urea fertilizer will be exported.
With this award, Samsung E&A exceeded its annual order target of KRW 12 trillion. More than KRW 8 trillion of that total comes from the chemical business, including the KRW 3.4 trillion in orders secured during the first half of this year. Apart from the fact that the order involves an overseas chemical project, details such as the client, project name and contract period have not been disclosed.
There are also projects that could be confirmed as additional orders by the end of the year. The most widely discussed is a urea plant in Qatar, which industry sources estimate could be worth up to KRW 5.3 trillion. Given Samsung E&A’s strong position in the Middle East, many observers believe its chances of winning the Qatar bid are substantial now that it has entered the bidding process. Since first entering Saudi Arabia in 2003, the company has carried out more than 30 projects. In 2024, it also won the Fadhili Gas Project, its largest-ever award, worth USD 6 billion, or approximately KRW 8 trillion.
There are also opportunities this year to secure EPC contracts for gas production facilities. The Kafji gas package in Saudi Arabia is a leading example, with industry sources estimating its value at KRW 2.6 trillion. Kuwait Oil Company (KOC)’s gas project is also being mentioned. These prospects explain why the chemical business is considered to have growth potential comparable to that of advanced industries and new energy.
[email protected] Yoon-ho Kim Reporter