LG Won the Order for 1.6 Billion Project

LG Construction won the order for a construction of a large-scale gas plant of 1.6 billion dollars in Iran and will contract soon.

According to Ministry of Construction & Transportation and Construction industry, by consortium with Norwegian and French companies, LG Construction succeeded 9th and 10th gas plant construction ordered by Iranian NIO.

LG construction can receive 45.3% (700 million dollars) of total construction revenue among 3thre companies of the consortium. The success of the bid is the biggest construction for domestic companies since IMF.

LG Construction will have official contract with NIO at 14th, and launch the construction with the partners from this year.

The project to construct purifying plant natural gas pumped from gas well of South Far in the sea located 100 kilo meters away from south cost in Persian Bay. NIO plans project to be completed and is the second stage of total 12 stages of ‘South Far Projects’

When the plant is completed, it will produce 20 billion cubic feet of gas daily, and supply to Iran and export to other countries in the form of LPG.

In South Far Project, Hyundai Construction is participating in by succeeding bid for 2nd and 3rd (1 billion dollars) in 1999 and 4th and 5th (1.2 billion dollars) in the early of this year.

By this project, the total amount of foreign construction of LG Construction is 1.03 billion dollars (3 projects) and positions the second best after Hyundai Construction (1.31 billion dollars). At the end of the last month, LG recorded 330 million dollars of foreign construction and position 4th among domestic construction companies. By the project, total amount of foreign construction by domestic companies increased to 46.6 billion dollars, and expected the target of this year established by the government realized without difficulty.

Do Tae-ho, senior officer for foreign construction forecasted “by this projects, Korean companies have high possibility to succeed the bid for 11th and 12th stage construction ordered by NIO” and added “the government also will reinforce to support domestic companies in finance and warranty, and pursue ‘construction diplomacy’

Jin-Hup Song jinhup@donga.com