Samsung Engineering signs US $1.14 billion contract for first petrochemical project in Russia

Samsung Engineering has entered the Russian market for the first time, announcing on Wednesday that it had signed a one-billion euro (US $1.14 billion) contract with China National Chemical Engineering & Construction Corporation Seven Ltd (CC7) for the design and procurement work of the Baltic Ethane Cracker Project in Russia.

Samsung Engineering’s contract with the Chinese state-owned construction company will see the South Korean giant execute the engineering and procurement (EP) for the Ethane Cracker in Gas to Chemicals Project in Russia. Baltic Chemical Complex LLC. (BCC), the original owner of the contract, previously signed an EPC contract with CC7 in 2019. The project is located at the Gulf of Finland near the seaport of Ust-Luga, Leningrad Oblast, 110 km southwest of St. Petersburg, Russia, Samsung Engineering said in a statement.

“Technology competitiveness and our abundant track record for similar projects in markets such as India, Saudi Arabia and Thailand became the stepping stone for winning the Ethane Cracker in Gas to Chemicals Project. Marking our first project in Russia, we will ensure that we provide a state of the art design for this project,” a Samsung Engineering spokesperson said in the statement.

The scope of work for Samsung Engineering includes an Ethane Cracker Unit with a total design capacity of 2.8 million T/y and procurement for the project. The Ethane Cracker Unit is the core process element of the plant, and the Baltic Ethane Cracker Project produces ethylene from separated carbon out of natural gas.