MOSCOW (MRC) -- GS Engineering & Construction has notified the Korea Stock Exchange that it has withdrawn from a USD 1.4-billion contract to build a polyethylene (PE) plant in Kazakhstan, reported GV with reference to an industry source.
In 2013, a consortium of GS, Petrofac and Linde received a contract from Kazakhstan LG Polyethylene LLP (KLPE) for a PE plant comprised of two 400,000-t/y lines. The project is part of KLPE’s integrated petrochemicals complex and infrastructure project in the Tengiz and Karabatan regions of Kazakhstan.
GS attributed its decision to cancel the contract to a disagreement on the cost of construction for the project.
KLPE is an equally-owned joint venture of Kazakhstan Petrochemical Industries and LG Chem.
GS Engineering & Construction (GS E&C) is aiming to take a larger piece of the global construction pie. Founded in 1969, the company provides engineering and construction services to a variety of industries around the world. GS E&C's civil division builds roads, bridges, railroads, underground subways, and harbors. Its plant division undertakes work on oil and gas and petrochemical facilities. Projects include sewage system maintenance and wastewater treatment and commissioning of nuclear power plants. GS E&C also builds housing across Korea and in Vietnam. In addition to offices in South Korea, the firm has offices in China, India, Indonesia, Iran, Saudi Arabia, Italy, United Arab Emirates, and Vietnam.
MRC