Hyundai Engineering in $3.2 Billion Iran Deal
South Korea's Hyundai Engineering Co. (HEC) signed an agreement on Sunday for financing and constructing the second phase of Kangan Petro Refining Complex -- a major petrochemical and refinery project in southern Bushehr Province.
The engineering, procurement, construction and financing (EPCF) agreement, worth €3 billion ($3.2 billion), was signed in Tehran by the HEC and Ahdaf Investment Co., the majority stakeholder in the Kangan project. Ahdaf is a subsidiary of Iran's Oil Pension Fund Investment Co., Shana reported.
As per the agreement, 95% of the funds will be provided by Hyundai through South Korean financial institutions, according to Asghar Arefi, the chief executive of Ahdaf.
"Financing will begin in nine months," Arefi said, adding that the complex is expected to become operational in four years.
The complex is set to receive natural gas from Phase 12 of the South Pars field in the Persian Gulf for producing 400,000 tons of heavy polyethylene and 350,000 tons of light polyethylene a year in the second development phase.
The project's first phase is designed to produce ethane, propane, butane and naphtha. A total of €120 million has been invested in Kangan's first phase which has made 30% progress.
"We are happy to seal the deal (for Kangan project) following a preliminary agreement that was signed in Tehran in May," Sung Sang-rok, Hyundai Engineering CEO, was quoted as saying by Shana.
HEC was established in 1974. The Seoul-based company provides comprehensive engineering and construction services for plant and infrastructure projects. It covers the entire project life cycle, including feasibility study, basic and detailed design, procuring, commissioning and operation, and maintenance.
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