The Export-Import Bank of Korea (Korea Eximbank) said that it will provide $1bn in project financing to Hyundai Engineering & Construction for the Amiral petrochemical facility construction project in Saudi Arabia.

In June 2023, Hyundai Engineering & Construction won contracts for two EPC packages, worth around $5bn, for the petrochemical project. The project financing from Korea Eximbank will be used for paying for construction costs incurred by Hyundai Engineering & Construction.

An official from Korea Eximbank said: “This project is a core cooperation project specified in the joint declaration of the Korea-Saudi summit held in October last year, and we expect that it will respond to our government’s policy of strengthening economic cooperation with Saudi Arabia through financial support.

“We will serve as a bridgehead to enable Korean companies to win orders for Middle Eastern projects scheduled to be ordered in the future by utilising the basic credit agreement (F/A) signed with Aramco.”

Hyundai Engineering & Construction’s first EPC package involves the installation of a mixed feed cracker and refinery off-gas system, designed to produce an additional 1,650 kilotons per annum (KTA) of ethylene and related industrial gases.

The second EPC package focuses on utilities, flares, and interconnecting systems, including facilities that supply water, electricity, and other utilities, as well as support systems that interconnect the primary facilities.

Located in Jubail, the Amiral project is being developed by the Saudi Aramco Total Refining and Petrochemical Company (SATORP) joint venture (JV) owned by Aramco and TotalEnergies. Aramco holds a stake of 62.5% in the JV while its French partner owns the remaining stake of 37.5%.

The $11bn petrochemical complex project is planned to be integrated with the existing SATORP refinery in Jubail.

The final investment decision (FID) on the petrochemical project was announced by Aramco and TotalEnergies in 2022. The parties aim to begin commercial operation of the Amiral petrochemical complex project in 2027.