Daewoo E&C seeks energy infrastructure biz in Yemen
You-Jung Lee
Nov 24, 2023 (Gmt+09:00)
South Korea's Daewoo Engineering & Construction Co. announced on Friday that it signed a memorandum of understanding (MOU) with the Yemeni Ministry of Electricity and Energy for cooperation on the liquefied natural gas (LNG) receiving terminal project in Yemen on Nov. 22.
This project is the construction of an LNG receiving terminal and connecting pipes for the gas supply to the Little Aden power plant in Yemen. Both sides discussed co-working on additional energy infrastructure projects, including the construction of a 450-megawatt combined-cycle power plant.
Yemen is pursuing the building of LNG terminals and gas-based combined-cycle power plants to address the issue of increasing electricity generation costs. Daewoo E&C, with its diverse expertise in LNG plants and power plant construction, sees potential opportunities in the project.
The company has experience building LNG plants in Algeria, Papua New Guinea, Sakhalin, and Indonesia. It's currently working on a $3.8-billion LNG export terminal construction project in Nigeria.
Following the MOU with the Yemeni government, it plans to continue discussions and on-site surveys at the local site.
"We look forward to ongoing collaboration with the Yemeni Ministry of Electricity and Energy, expecting positive results," Chairman of Daewoo Engineering & Construction Jung Won-ju said.
A Daewoo E&C source explained that the MOU with the Yemeni government has provided a foundation for quickly advancing the project when geopolitical uncertainties in Yemen are resolved.