Hyundai Engineering wins order to add facilities for refinery in Indonesia

By Lim Chang-won Posted : February 27, 2020, 11:01 Updated : February 27, 2020, 11:01

[Courtesy of Hyundai Engineering]

SEOUL -- Hyundai Engineering, an engineering and construction service company in South Korea, won an additional order from Indonesia's state-run PT Pertaminato to add facilities for a refinery in Balikpapan on the island of Borneo.

Hyundai Engineering (HEC) said that it would build a sulfur recovery unit (SRU), which recovers sulfur from hydrogen sulfide (H2S) generated during refining, and a hydrogen manufacturing unit (HMU) which produces high purity hydrogen, for the refinery. HEC's share is about $230 million.

In September 2019, Hyundai Engineering, affiliated with South Korea's Hyundai auto group, won a $2.17-billion deal from PT Pertamina to upgrade the refinery in Balikpapan. If completed, the refinery will increase its oil-refining output from 260,000 barrels per day to 360,000 barrels.

The Balikpapan refinery has been upgraded as part of a national project to improve Indonesia's energy security and increase the production capacity of refineries. Companies involved in the project include SK E&C, Hyundai Engineering, PT Rekayasa Industri and PT PP (Persero).