On 10 June 2024, Hyundai Engineering, a Korean company, signed two agreements with Turkmenistan regarding the implementation of major gas industry infrastructure projects. The deals became a part of agreement package, signed following the summit talks between Presidents of Korea and Turkmenistan in Ashgabat.
These agreements include:
- Cooperation Agreement between the State Concern “Turkmenhimiýa” (Turkmenistan) and Hyundai Engineering Co., Ltd. (Republic of Korea) to ensure successful commissioning and stable operation of the Kiyanli polymer plant.
- A framework agreement on cooperation under Phase 4 of the Galkynysh gas field development between the State Concern Türkmengaz (Turkmenistan) and Hyundai Engineering Co.,Ltd (Republic of Korea) for the design, construction “with the condition of fully ready construction” of wells, commercial gas treatment facilities with a production capacity of 10 billion cubic meters per year the year and gas purchase.
The signing ceremony was attended by President Yoon Suk Yeol and President Serdar Berdimuhamedov, as well as Hyundai Engineering CEO Hyeon-Sung Hong and Chairman of the Board of the State Concern Turkmengaz Maksat Babayev.
“The Fourth Phase Development Project of the Galkynysh Gas Field is a top priority project by the government of Turkmenistan, including the development of 30 gas wells in the Galkynysh Gas Field, located about 350 km southeast of the capital Ashgabat, and the construction of natural gas processing facilities and auxiliary facilities with a processing capacity of 10 billion cubic meters of gas per year,” the press service of Hyundai Engineering reports.
In addition, Hyundai Engineering has signed a cooperation Agreement with the Turkmenhimiya State Concern of Turkmenistan on the second stage of the project to normalize the operation of the polymer plant in Kiyanli.
The document was signed by Hyundai Engineering CEO Hyeon-Sung Hong and Dovrangeldy Sapbayev, Chairman of the Turkmenhimiya.
The polymer plant in Kiyanli, located about 500 km northwest of the capital Ashgabat, was commissioned in 2018.
The plant was built by a consortium of Hyundai Engineering companies together with LX International Corporation and TOYO Engineering Corporation. The complex is designed to produce 386 thousand tons of polyethylene and 81 thousand tons of polypropylene per year. The cost of the project was US $ 3.4 billion.
Hyundai Engineering’s first foray into the Turkmen market came in 2009 with a $1.3 billion contract to build a desulfurization plant at the Galkynysh field. The company’s work in Turkmenistan also includes construction of technological installations at the Turkmenbashi oil refinery complex.