RIYADH – Hyundai Engineering and Construction, Hyundai Engineering Co., and Saudi Arabia's state-run oil company, Saudi Aramco, inked a $2.4 billion contract on Monday for the construction of a gas processing plant in the Jafurah gas field.
According to a new release by Yonhap News Agency, the agreement was part of a ceremony celebrating 50 years of construction collaboration between South Korea and Saudi Arabia. President Yoon Suk Yeol, who is on a four-day state visit to Saudi Arabia, was present at the event.
The Jafurah gas field is noteworthy for being the largest liquid-rich shale gas play in the Middle East, containing an estimated 200 trillion standard cubic feet of natural gas, as stated by Aramco. The deal increases the total value of construction contracts secured by South Korean firms in Saudi Arabia this year to $8.6 billion.
The ceremony, hosted at a Neom exhibition center, also commemorated the anniversary of South Korea’s first construction project in Saudi Arabia. That project, carried out by what is now SM Samwhan Corporation, entailed building a highway between the cities of AlUla and Khaybar.
During his address, President Yoon highlighted the need for both nations to adapt their economic and infrastructural partnerships to meet contemporary technological shifts. He expressed that synergies between South Korea's urban development capabilities and Saudi Arabia’s Neom smart city initiative could offer a new paradigm for future cities.
In related developments, South Korean internet portal operator Naver signed a $100 million contract with Saudi Arabia’s Ministry of Municipal and Rural Affairs and Housing. The contract aims to create "Digital Twin" virtual reality spaces in five Saudi cities, including Riyadh and Mecca, for urban planning, management, and flood forecasting services.
Additional memoranda of understanding were also signed during the ceremony. These included an agreement between South Korea’s Samsung CandT and Saudi Arabia’s Public Investment Fund to form a joint venture focusing on modular construction for the Neom project. Another was signed between South Korean mobile carrier KT Corp., Hyundai Engineering and Construction, and Saudi Telecom, outlining plans to establish data centers and other digital infrastructure.