The onshore gas plant, which is part of the Rosmari Marjoram project in Sarawak, will be able to process up to 800 million cubic feet of gas per day

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Shell awards a contract to execute an onshore gas plant in Malaysia to Samsung Engineering. (Credit: SatyaPrem from Pixabay)

Samsung Engineering has won a $680m contract from Sarawak Shell Berhad (SSB), a subsidiary of Shell, for an onshore gas plant associated with the Rosmari Marjoram project in Malaysia.

To be located in Bintulu, Sarawak, the plant will be executed in two phases. The first involves a limited scope before SSB takes a final investment decision (FID) for the Rosmari Marjoram project.

The remaining scope of the plant will be carried out after SSB makes the FID.

The onshore gas plant will be designed to process up to 800 million cubic feet of gas per day.

Samsung Engineering will carry out the project on an engineering, procurement, construction, and commissioning (EPCC) basis.

The company said that the project’s ready for start-up (RFSU) is anticipated to be achieved by the end of 2025.

Samsung Engineering won the contract after prevailing in a bidding round for the dual front end engineering and design (FEED) contract.

Samsung Engineering president and CEO Sungan Choi said: “Track record, regional expertise as well as sustainable investment in Sarawak, combined with our strategy to participate from FEED stage and rollover to execute a total solution in EPCC, proved to be the right strategy, so that Shell entrusted us with their OGP project in Sarawak.

“We’re gratified and honored to deliver a modern, sophisticated and premium Onshore Gas Plant for Shell in Sarawak.”

The Rosmari Marjoram project is a gas development in the deepwater of Malaysia. It consists of the Rosmari and Marjoram gas discoveries made in 2014 in block SK 318.