Samsung Engineering has received a contract, valued at $680m, from Shell’s subsidiary Sarawak Shell Berhad (SSB) for the construction of an onshore gas plant in Malaysia.

Under the contract, Samsung Engineering will be responsible for the engineering, procurement, construction, and commissioning (EPCC) of the gas plant for the Rosmari Marjoram project.

To be located in Bintulu, Sarawak, the proposed plant will be equipped to process up to 800 million cubic feet of gas per day.

The gas plant is planned to be executed in two phases, with the first phase involving a limited scope before SSB makes a final investment decision (FID) for the Rosmari Marjoram project.

The second phase will involve the completion of the remaining scope of the plant by SSB, following the FID.

Samsung expects the project to achieve the ready for start-up (RFSU) stage by the end of 2025.

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By GlobalData

Samsung Engineering president and CEO Sungan Choi said: “Track record, regional expertise. as well as sustainable investment in Sarawak, combined with our strategy to participate from FEED stage and rollover to execute a total solution in EPCC proved to be the right strategy so that Shell entrusted us with their OGP project in Sarawak.

“We’re gratified and honoured to deliver a modern, sophisticated, and premium onshore gas plant for Shell in Sarawak.”

The Marjoram/Rosmari is a conventional gas development located in block SK 318, in water depths of approximately 2,624ft, offshore Malaysia.

Operated by Sarawak Shell, the Rosmari Marjoram project comprises the Rosmari and Marjoram gas discoveries made in 2014.