DL E&C

First Overseas Order Comes from Russia after DL E&C’s Launch

The first overseas order of DL E&C, which was launched anew this year, came from Russia. DL E&C said on March 12 that it signed an interim agreement for Moscow refinery modernization with Russian oil giant Gazprom Neft. The order amount is KRW 327.1 billion, and the formal agreement is scheduled to be signed within 90 days. The company expects to win more orders in full scale in Russia where it has worked hard for overseas market diversification.
 

The project involves building a hydrocracking plant within the Moscow refinery located southeast of Moscow. The company will perform the project exclusively from design and procurement to construction and supervision, and the project is scheduled to be completed in the second half of 2024. The Moscow refinery has been performing modernization work including two distillation plants expansion in three steps since 2013. This project corresponds to the third and last step. The new plants will produce hydrogen by receiving natural gas and petrochemical mixtures in connection with the existing refinery. Using this, kerosene and diesel will be produced.
 

DL E&C entered Russia for the first time in 2014 under its overseas market development strategy. The company has accumulated technological capabilities and know-how to meet technology standards specialized for Russian plant business, localization conditions, and climate and geographical features while successfully performing basic design (FEED) and detailed design work of various gas and petrochemical plants. With DL E&C winning three projects in a row including this project ordered by Gazprom Neft, its business-performing abilities have been recognized by the Russian client, a major one. The company is actually showing potential to compete squarely with EPC companies in Europe and Japan where the company entered in the 1990s.
 

DL E&C recently bagged a basic design project for a methanol plant ordered by EuroChem, a Swiss global fertilizer company. For approximately 10 months, the company will perform basic design to build a daily 8,000t-output methanol production plant, the world’s largest, in the Ust-Luga region, 100km southwest of Moscow, Russia. The EPC project is then planned to be ordered. DL E&C’s strategy for winning the EPC project is establishing high reliability with the client through successful basic design performance. 

 “Russia is a market with high plant business growth potential due to rich oil deposits. We will build matchless status in Russia based on our experience and technological capabilities of successfully performing businesses in adverse conditions such as the bitter cold in Russia,” DL E&C Plant Business Director Yu Jae-ho remarked.