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South Korea’s DL E&C Wins Major Russian Contract

10.01.2022 - South Korean engineering and construction group DL E&C has won a contract worth about €1.17 billion for work on plants that are part of the proposed Russian Baltic Chemical Complex to be built at the seaport of Ust-Luga, near the Gulf of Finland.

The complex, which includes plants for 3 million t/y of PE based on technology licensed from Univation, 120,000 t/y of butane and 50,000 t/y of hexane, will be Russia’s largest gas and chemicals facility, capable of processing 45 billion cubic meters of natural gas into LNG and chemical products annually. 

DL E&C will be in charge of designing the plants and procuring equipment. The company has been involved in the complex’s basic project design since December 2019 and said that, having beaten rival bids from European competitors, it looked forward to winning new contracts in Russia. It added that it will compete again in the bidding process for the right to be involved in the project’s main construction work.

“This project is meaningful in that we won a big order in Russia, a market regarded as a high barrier to entry for Korean construction companies,” said Yoo Jae-ho, head of DL E&C’s plant business division. "We would strengthen our digital innovation and building information modeling-based design ability to solidify our position in the expanding Russian market.”

The group has its eyes on the Russian market to diversify its activities and pursue growth opportunities. It established an office in the country in 2015.

Author: Elaine Burridge, Freelance Journalist

E&C