Hyundai Signs a Contract with Saudi Aramco worth $2.4 billion to build a gas processing plant in Saudi Arabia, the Seoul Presidential Office announced on Tuesday.
Celebrating 50 Years of Cooperation
This historic agreement was signed in Riyadh at a ceremony marking 50 years of construction cooperation between the two countries. South Korean President Yoon Suk Yeol was present as part of his state visit to the kingdom.
Two Hyundai Motor Group Affiliates Involved
Both construction companies are part of the Hyundai Motor Group and have already worked on the first phase of Aramco’s Jafurah gas processing facilities project after winning the order in 2021. Hyundai has confirmed the signing of the $2.4 billion contract for the second phase of this project.
The Jafurah gas field is the largest unconventional oil-related gas field in Saudi Arabia, with estimated reserves of 200 trillion cubic feet (5.7 trillion cubic meters) of raw gas. Aramco said daily production could reach around 2 billion cubic feet by 2030.
Commitment to Continuous Cooperation
President Yoon and Saudi Crown Prince Mohammed bin Salman welcomed the agreement in a joint statement after their talks, pledging continued cooperation in construction and infrastructure, particularly in the context of Saudi Arabia’s NEOM mega-project and the Vision 2030 reform plan.
Call for Peace
The joint statement also called for greater efforts to prevent the escalation and spread of the conflict between Israel and Hamas, urging both sides to stop targeting civilians and allow the “rapid and unimpeded delivery” of humanitarian aid.
South Korea’s state-owned Korea National Oil Corp also signed a storage agreement with Aramco during President Yoon’s visit, allowing the Saudi company to store 5.3 million barrels of oil in South Korea’s storage facilities at the port of Ulsan for five years.
Prospects for Cooperation Abroad
After a four-day stay in Riyadh, President Yoon travelled to Doha, where he will attend an international horticultural exhibition before holding a summit with the Emir of Qatar, Sheikh Tamim bin Hamad al-Thani, on Tuesday, according to his office.
This major collaboration between Hyundai and Saudi Aramco, marking 50 years of cooperation, opens up new prospects for the construction and energy industries in Saudi Arabia. It also strengthens international relations between South Korea and Saudi Arabia at a time when efforts are being made to promote peace in the Middle East.
