Saudi Petrochemical and Plant EPC Updates — 2026-06-13
Saipem secured a €900M contract for the Uthmaniyah gas plant, while Samsung E&A emerges as a key global EPC partner. Despite strengthened energy cooperation, risks remain due to massive losses from the canceled NEOM project.
Saudi Petrochemical and Plant EPC Updates — 2026-06-13
1. Project Award Updates
1) Saipem wins Uthmaniyah Gas Compression Plant project (€900M)
- Project Name: Uthmaniyah Gas Compression Plant (Onshore, Saudi Arabia)
- Contractor: Saipem (via its subsidiary SNSH - Saipem Nasser Saeed Al-Hajri Contracting Company)
- Contract Value: €900 million (approx. $1.2 billion)
- Duration: Approximately 42 months
- Status: Contract finalized
2) Samsung E&A emerging as a key global EPC partner
- Expected expansion in order opportunities due to shifts in the global energy market.
- Growth expected from 2027 onwards, supported by continued investment from affiliates.
- Shinhan Securities (June 12 report) positively evaluated the group's increased capital expenditure and energy market opportunities.
3) Overseas EPC project updates (Reference)
- Energy China: Won the €1.687 billion Taweelah C power plant project in Abu Dhabi (last week).
- Growing trend of domestic firms entering global projects.
2. Domestic Firm Participation and Financial Support
1) Strengthened South Korea-Saudi energy cooperation
- Sectors: Major energy projects including oil, gas, and petrochemicals.
- Key Partner: Saudi Aramco (Lead of core energy projects in Saudi Arabia).
- Policy Support: A vice minister from the Ministry of Trade, Industry and Energy emphasized ongoing interest and cooperation to help Korean firms with world-class technical capabilities participate more broadly in Aramco projects.
- Mechanism: Reviewing cooperation through strategic petroleum reserves and oil storage infrastructure.
2) Policy guides for investing in Saudi Arabia
- KOTRA: Provides the "2025 Saudi Arabia Market Entry Strategy" report.
- KDI Center for Economic Education: Published a practical guide for Saudi investment (covering investment environments, procedures, promising sectors, company law, labor law, and foreign investment law).
3) Saudi Public Investment Fund (PIF) mega-project strategy
- Investment Areas: Infrastructure, high-tech, renewable energy, tourism, sports, entertainment, and mobility.
- Investment Vehicles: Acquisition of global company stakes, expanded alternative investments, and new mega-projects (NEOM, Newcastle United, etc.).
- Opportunities for Korean Firms: Potential for supply chain and subcontracting participation in PIF-led mega-projects.
3. Early Risk Detection (Contract/Financial/Political)
Risks regarding massive losses from the NEOM project
- Official Cancellation: Saudi Arabia fully canceled its NEOM construction plans in March 2026 following the U.S.-Iran war.
- Scope of Impact: All contracts with major domestic construction firms, including Samsung C&T and Hyundai E&C, have been terminated.
- Loss Scale: Massive losses and PF maturity pressures are expected due to the contract terminations.
- Burdens: Difficulty predicting project resumption due to wartime delays, along with challenges in assessing construction cost increases and liability.
Today's Risk Notes: No specific risks reported for new plant EPC projects. However, the ripple effect of halted large-scale projects due to political instability in the Middle East (U.S.-Iran conflict) continues to persist.
4. Competitor Trends and Strategies
1) Italy's Saipem strengthens its Saudi market presence
- Order Scale: Expanded market share with the €900M Uthmaniyah project.
- Localization Strategy: Enhanced local partnerships through SNSH (a joint venture including Saudi Aramco's stake).
- Strengths: Long-term experience in gas and petrochemical projects and large-scale 42-month project management capability.
2) China's Energy China expands in the Middle East EPC market
- Recent Win: $1.687 billion for the 2.6GW Taweelah C power plant in Abu Dhabi.
- Competitiveness: Price competitiveness of Chinese construction firms in large-scale power and infrastructure projects.
- Strategy: Targeting energy infrastructure projects in the Arabian Gulf region.
3) Strategic positioning of domestic firms (Samsung E&A)
- Strengths: Technical credibility as a global EPC partner and affiliate support system.
- Weaknesses: Temporary decline in trust due to the NEOM cancellation; need for a re-entry strategy for the Middle East market.
- Opportunities: Potential for preferential negotiations via the Korea-Saudi energy cooperation policy.
Editor's Note: As of today (2026-06-13), new project orders in the Saudi petrochemical and plant EPC market remain limited, with the Saipem Uthmaniyah project being the primary news. Signals of strengthened Korea-Saudi cooperation and the aftermath of the NEOM cancellation remain polar risk factors in the market.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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