Hyundai Heavy Industries wins $3.2 Billion USD Power Plant in Jeddah

Saudi Electricity Company has awarded contracts for South Korea's Hyundai and Japan's Mitsubishi to build and supply equipment for a large power plant in Jeddah.

Hyundai Heavy Industries Co. Ltd  has received a $3.2 billion order to build a power plant from state-owned Saudi Electricity Co., a person with direct knowledge of the matter said Tuesday, helping the world's No. 1 shipbuilder by sales further diversify its sources of revenue as its main business falters.

Hyundai Heavy Industries (HHI) will build the 2,650-megawatt power plant known as Jeddah South, while Mitsubishi Heavy Industries (MHI) will supply equipment for the oil-fired plant.

Hyundai Shipbuilders, which are suffering a slump in orders from Europe as the region's debt crisis takes a toll, are now focusing more on other businesses to help meet their order targets for the year.

The latest deal marks the biggest order Hyundai Heavy Industries-which has interests across seven business sectors, including building power plants and offshore facilities--has received so far this year.

"Hyundai Heavy will build a 2,640-megawatt thermal power plant near the Red Sea, 70 kilometers south of Jeddah, over the next 48 months for the Saudi Arabian state-run company," the person told Dow Jones Newswires by telephone. "The Saudi company will pay the order without any financing."

The order comes amid a 9.7% on-year decline in the value of orders received by South Korean companies for building power and petrochemical plants and oil-exploring offshore platforms to $37.4 billion in the three months ended Sept. 30, data by the Ministry of Knowledge Economy showed Tuesday.

For Hyundai, the deal is especially significant since it has achieved only 38% of its overall order target of $30.552 billion at the end of August as clients have run into financing problems due to the European debt crisis.

Analysts say Hyundai is not likely to achieve the overall order target but the company is on track to exceed its order target of $5 billion to build power and petrochemical plants, a sharp jump from the $1.01 billion of orders it received last year.

"In the fourth quarter, Hyundai is likely to win the Brass LNG terminal construction order worth more than $6 billion in Nigeria in the consortium with Hyundai Engineering & Construction," Hur Sung-duck, a shipbuilding analyst at HI Securities, said.

The construction of the plant means Saudi Arabia, the world's largest crude exporter, will continue to burn millions of barrels a week of oil for power generation for years to come.

But SEC expects the more efficient plant, to burn much less fuel oil per unit of electricity produced

"We are using for the first time in the kingdom super critical boilers which have a higher efficiency, reaching up to 40 percent efficiency in fuel consumption," SEC's chief executive Ali bin Saleh al-Barrak told Reuters in an interview.

SEC said in a bourse statement earlier on Monday that it had approved the award of an 11.96 billion-riyal ($3.12 billion) contract to build the plant but did not identify the winner.

The contracts for Jeddah are expected to be signed in the next few weeks, with contracts to build a similar-sized oil fired power plant at Shuqaiq awarded in late 2013, Barrak said.

Technical bids for the 2,600 MW Shuqaiq, a super critical fuel oil plant fitted with sulphur removing technology, are due in the first quarter of next year, Barrak said.

The state-run company also plans to spend around $35 billion on high voltage power lines, with another $25 billion spent on distribution networks over the next 10 years.

SEC has an installed capacity of 54,000 MW and will add around 4,000 MW over the next 12 months to help meet rising demand, with another 8,000 MW of capacity to be added in 2014.

Fox Business, Reuters

Meralco’s $1.2 Billion USD Subic Power Facility picked 3 Hyundai’s - Korea lead bidder

The power generation subsidiary of Manila Electric Company (Meralco) has entered negotiation phase with South Korea's Hyundai Group for the engineering, procurement and construction (EPC) contract of its $1.2-billion Subic coal-fired power facility to be sited at the Subic Freeport zone in Zambales.

"We had three bidders… we are negotiating now with the lead bidder," Meralco executive vice president Aaron Domingo has disclosed in an exclusive interview.

While he did not name their chosen turnkey contractor, other parties privy to the negotiations have divulged that Meralco PowerGen is now in talks with the consortium of three Hyundai companies, namely Hyundai Engineering & Construction Co. Ltd. (HDEC) ; Hyundai Corporation and Hyundai Engineering Co. Ltd. (HEC)

Redondo Peninsula Energy Inc. will be the corporate vehicle for the 600-megawatt Subic coal-fired project. Meralco PowerGen will be the major stakeholder, in partnership with Aboitiz Group's Therma Power Inc. and Taiwan Cogeneration Corporation.

Domingo noted that they are still on track when it comes to the October target on the issuance of the environmental compliance certificate (ECC) for the second 300-MW unit of the facility. The ECC for the first unit of the same capacity was already issued earlier by the Department of Environment and Natural Resources (DENR).

 "We will be able to satisfy the requirements of the DENR. Actually, we're doing more than the requirements because there are also some requirements of stakeholders, like for us to conduct some studies," he stressed.

Despite the recent legal snag in the facility's implementation, Meralco PowerGen is eyeing that it can still move ahead with construction next year as the Supreme Court had not issued the temporary environmental protection order (TEPO) batted for by the parties which have been trying to stop the project.

"We need to issue the notice to proceed. We're targeting December … we will start mobilizing for construction early next year," Domingo said. Nevertheless, he indicated that the facility's commercial operation may already skid to 2016.

While project developers are already certain on financial closure as well as on the power supply agreement (PSA) for the project, the Meralco executive has emphasized that their focus now is resolving the other major concerns.

"There are only three main issues now, and those are not within our control and we would like to get the cooperation of everyone," he said.

These concerns will cover the ECC, interconnection issues with the National Grid Corporation of the Philippines (NGCP) and finalizing the documentation process for the land lease development agreement (LLDA) with the Subic Bay Metropolitan Authority.

For the concern with SBMA being its project host, Domingo has emphasized that "we already have the framework of agreement; we will just need to document it."

On grid interconnection issues, he noted that concerns are "being resolved already. Now, it's just a matter of agreeing on the technical parameters for the interconnection."

Manila Bulletin 

Hyundai Heavy (HHI) to sells $636 Million Stake in Hyundai Motor

·        Hyundai Heavy offers 3.2 Million shares of Hyundai Motor in block deal

·        Offering worth up to $636 Million would be South Korea's biggest of 2012 (Adds details of the offering, South Korean equity deals)

(Reuters) - Hyundai Heavy Industries hopes to raise up to $636 million selling a stake in Hyundai Motor, as the South Korean shipbuilder looks to improve its financial health in the country's biggest equity capital markets deal this year.

Hyundai Heavy is offering 3.2 million Hyundai Motor shares at 219,500-228,500 Korean won, equivalent to a discount of up to 3.9 percent on Monday's closing price, according to a source with direct knowledge of the plans.

At the top end of the range, Hyundai Heavy would raise about 731 billion Korean won ($636 billion), in South Korea's biggest stock offering since chemical producer KCC Corp sold a $602 million stake in Hyundai Heavy on Jan. 12.

Hyundai Heavy said in a regulatory filing the stake had a book value of 746.4 billion won at the end of the first quarter and the sale would improve its financial structure.

The block sale announcement came after Hyundai Heavy's share price fell 8 percent this month to hit its lowest closing price in more than two years on Monday on expectations second-quarter earnings will be hit by the fallout from Europe's debt crisis.

The move came after South Korean refiner Hyundai Oilbank, 91.1 percent owned by Hyundai Heavy, postponed a $2 billion initial public offering in June because of volatile markets and ahead of a suspension of Iran crude imports on western sanctions.

Hyundai Heavy will still hold a 2 percent stake in the automaker after the sale.

Citigroup was hired as sole bookrunner for the deal. ($1 = 1,150.30 Korean won) (Reporting by Elzio Barreto in Hong Kong, and Ju-min Park and Hyunjoo Jin in Seoul.

Hyundai Engineering with HDEC signed $3 Billion USD - Venezuela refinery project

Wison Engineering Ltd together with Hyundai Engineering & Construction Co Ltd has won a $2.993 billion contract to upgrade a state-run oil refinery in Venezuela.

The three companies were granted the contract on June 28, 2012.

The companies will carry out engineering, procurement and construction of the Puerto la Cruz Refinery project, which is located 250 kilometers east of Caracas, the capital of Venezuela.

The project, which is expected to be completed within 42 months from its commencement, will upgrade refinery facilities to process heavy crude oil with a capacity of 210,000 barrels a day. The contract also calls for the expansion of gasoline, diesel and aviation kerosene projects and other facilities.

The $2.993 Billion US Dollar contract is a joint consortium of the following:

• Hyundai Engineering & Construction Co., Ltd (HDEC)'s share is $1.347 Billion US Dollars
• Wison Engineering's share is $927.80 Million US Dollars
• Hyundai Engineering Co., Ltd (HEC)'s share is $718.32 Million

"Venezuela refinery project is one of the multi Million Dollar project of Hyundai Engineering since the company has been awarded more than 1 Billion US Dollar projects in Turkmenistan and India last year (2011) which construction is still currently on progress

Hyundai Heavy ships the first LNG-fuelled GENSET 40GV Engine - Eco Friendly

Ulsan, Korea-based Hyundai Heavy Industries has completed test runs and started shipping the eco-friendly gas-fuelled Himsen H35/40GV engine. The first example is destined for a power plant in the Middle East.

The H35/40GV has been designed for power generation, and HHI says that it is intended for use onboard commercial ships, and in offshore facilities including drillships, as well as in onshore power plants,. The new gas engine runs on LNG rather than heavy fuel oil and has a maximum power output of 13,000bhp.

HHI says that the engine emits 20% less CO2 than diesel engines, and reduces NOx emissions by 97%. NOx emissions of 50ppm are claimed to be the world's lowest, while HHI also claims an engine efficiency improvement of 47%.

Kim Jeong-hwan, COO of Hyundai's engine & machinery division said: "Due to high oil prices and strengthening regulations on emissions, the demand for gas engines is increasing. We expect these high-output gas engines to help Hyundai Heavy expand our product lines, diversify target markets, and boost sales."

With a 35% share of the diesel engine market, Hyundai Heavy plans to be in the top three for gas engines with a 15% market share by 2013.

Hyundai Engineering wins $2.9 B USD Puerto La Cruz refinery deal – Venezuela

Hyundai Engineering & Construction Co., Ltd (HDEC), Hyundai Engineering Co., Ltd (HEC) together with the Chinese Wison Engineering have been retained to extend and streamline a refinery in Venezuela, for a total value of $ 2.9 billion US Dollars.

The project to expand Puerto La Cruz refinery is scheduled for 42 months.

The state run oil holding Petróleos de Venezuela already gave the order for the works.

"The project construction will start as soon as the company signs the formal agreements, expected at the end of July 2012."

USA: Hyundai Heavy Indus wins US$600m orders for oil, gas rigs

Hyundai Heavy Industries (HHI), the world's largest shipbuilder in South Korea, has won three orders worth a total US$600 million to build oil and gas rigs.

Hyundai Heavy had won a US$400 million order for a 35,000-tonne offshore oil platform scheduled to be delivered by August 2015.

The other two orders are each worth US$100 million. One is to build a semi-submersible drilling rig for LLOG of the United States, which has an option exercisable to order an additional structure.

The other is for six "land plant modules" capable of producing 200 million cubic feet of natural gas and 10,000 barrels of oil a day for an unnamed U.S. oil major, with scheduled delivery in June 2015

Fred Olsen places $700 million deepwater semi order in Hyundai Heavy

A wholly owned subsidiary of Fred. Olsen Energy has entered into a turnkey contract with Hyundai Heavy Industries Co., Ltd. for the building of a harsh environment ultra deepwater semi submersible drilling rig with scheduled delivery in March 2015.

Total project cost is estimated to $700 million (including spare parts, owner furnished equipment and yard project team).

Another subsidiary for Fred

Olsen Energy ASA has been granted an option from Hyundai for the purchase of a similar second drilling rig exercisable within October 2012.

The new drilling rig will be a Moss Maritime CS 60 E design and is designed for water depth capacity up to 10,000 feet.

The unit will be fully compliant with Norwegian Continental Shelf requirements, and is designed for year round operations in the Norwegian Barents Sea. Further, the rig is specially designed for safe and efficient drilling and completion operations for the full water depth range.

Hyundai Engineering (HDEC) signs on $1.5 Billion Ma'aden Aluminium refinery Contract

Hyundai Engineering & Construction has signed the letter of intent (LOI) with Ma'aden Bauxite and Alumina Company for the $1.5bn aluminum refinery project to be built at the Ras Al Khair industrial complex.

The details on the contract, which was awarded to the Korean company in March, specify that the refinery will have an annual production capacity of 1.8m tons of smelter-grade alumina, and that the project due for completion by the end of 2014.

"The contract includes completing detailed engineering, procurement, construction, pre-commissioning, commissioning assistance, start-up assistance and training services," said a Ma'aden statement posted on the bourse.

The signing of the deal puts a safeguard in place to prevent the occurrence of a breakdown in negotiations. Earlier in the project's tendering phase Fluor Corp. was awarded the contract, but that decision was then subsequently reversed.

Saudi's majority state-owned Ma'aden has a 74.9% share in the fully integrated Ras Al Khair aluminium complex, which will ultimately comprise a bauxite mine at Ba'aitha, an alumina refinery, aluminum smelter and rolling mill. The remaining 25.1% stake in the project is owned by the US Alcoa.

"The government of the Kingdom of Saudi Arabia has set the vision and established the infrastructure to enable the development of the world's largest, lowest cost, fully integrated aluminum industrial complex," said Abdullah Busfar, Vice President of Maaden's Aluminium Strategic Business Unit.

The refinery is part of the second phase of the $10.8 Billion Minerals Industrial City project on the East coast of Saudi Arabia, 60 km North of Jubail, Eastern Province, Saudi Arabia.

Hyundai Heavy Industries Introduces the ultra large R1200-9 Excavator

Hyundai Heavy Industries (HHI), the world's biggest shipbuilder and a leading construction equipment manufacturer, announced yesterday (May 23, 2012) the launching of the 120-ton excavator (R1200-9) in the Korean market.

The new ultra-large excavator, featuring the Hi-Mate remote management system, can generate power up to 750 hp. The R1200-9 excavator has been very popular in Russia, Australia, and Indonesia since it debuted in those markets last year.

The new excavators are the biggest in the Korean market. The next biggest excavator is Hyundai Heavy's 80-ton excavator (800LC-9).

With the introduction of this new model, Hyundai Heavy is the only Korean company with a full line-up of excavators, ranging from 1.6-ton mini excavators to 120-ton excavators.

The excavators measure 14.5 m in length, 5.5 m in width, and 6.2 m in height. They also have self-diagnostic for major parts, 7-inch LCD dashboard, rear camera, sun roof, and anti-theft system.

Hyundai Heavy has been seeing rapid growth in its construction equipment business with constant technological developments and introduction of market-friendly models. Hyundai Heavy introduced Korea's first electric excavators and hybrid excavators in 2010.

HHI - Veteran lawmaker Chung announces bid for president in South Korea

Chung Mong-joon, a veteran lawmaker and a 6^th son of the late Hyundai Group founder, declared his candidacy for president Sunday, saying he will write a new history for the country.

In a news conference at the National Assembly in Seoul, the 60-year-old Chung said, "I will write a new history for Korea by drawing on my experiences in managing a firm, in foreign diplomacy and in helping the Republic of Korea become one."

The presidential election is scheduled for Dec. 19 with incumbent President Lee Myung-bak barred by law from seeking re-election.

Chung's announcement came weeks after he was re-elected to parliament for a seventh straight term in the April 11 general elections. It was Chung's second time being chosen to represent a Seoul electoral district, after serving five terms in the southeastern city of Ulsan, where the world's largest shipyard, Hyundai Heavy Industries Co., is based.

The lawmaker is a son of late Hyundai Group founder Chung Ju-yung and the biggest shareholder of Hyundai Heavy Industries.

"The Republic of Korea is standing at a crossroads. I am concerned our country could collapse in its current situation," Chung said. "Now, we must change. We must bring together the divided hearts of the people. What created the miracle of industrialization and democratization, envied by the world, was not so much political leaders as our great people."

He vowed to push for political and economic reforms, accusing politicians of deceiving the people with populist ideas and lamenting the lack of solutions to various social ills, such as social polarization and youth unemployment.

Creating a sustainable welfare system, removing faction politics and demanding greater corporate social responsibility would also be priorities for him, he said.

Addressing North Korea, he suggested preparing "diplomatic measures" in cooperation with other concerned parties such as China, the United States and the United Nations to "firmly respond" to any future provocations from the communist country.

Chung is the second member of the ruling Saenuri Party to officially declare for the ruling party's presidential candidacy. Last week, Gyeonggi Province Governor Kim Moon-soo declared his bid.

Chung served as vice president of football's international governing body FIFA from 1994 through 2011 and helped bring South Korea its first FIFA World Cup in 2002, when the country co-hosted the event with Japan. Hyundai is one of FIFA's major sponsors. The businessman is now honorary vice president of the organization.

The two contenders are expected to face an uphill battle against Saenuri's interim leader Park Geun-hye, a long-time presidential hopeful who led the party to a morale-boosting victory in this month's parliamentary elections.

Park has broad support from across the party and the current primary rules appear favorable to her in giving roughly the same weight to party members and ordinary citizens.

Last week, Kim called for an "open primary" that selects the party's presidential candidate based entirely on support from ordinary citizens regardless of their party membership.

Lee Jae-oh, a close confidant of the current president, and former Prime Minister Chung Un-chan, are also expected to run for the country's lead post. (Yonhap)