Sinopec Engineering (Group) Co., Ltd. (SEG), a Chinese state-owned engineering company, has secured a combined US$795 million in new Gulf Cooperation Council (GCC) contracts, comprising a construction contract for ADNOC’s Habshan complex in the UAE and an EPC (Engineering, Procurement and Construction) contract for the emergency repair project at Saudi Aramco’s Ras Tanura refinery. It is reported that the awards were disclosed as part of SEG’s 2026 interim results announced on August 17.
In the UAE, it is reported that ADNOC awarded SEG a US$750 million construction contract for the Habshan project. According to the company’s disclosure, the award is identified only as a “construction contract,” with no further package-level details on its scope. In Saudi Arabia, Saudi Aramco is reported to have awarded SEG a US$45 million EPC contract for the Ras Tanura refinery emergency repair project. Alongside these, SEG reportedly signed two separate 60-month agreements with Saudi Aramco: an EPC Long-Term Agreement (EPC LTA) covering the inspection, maintenance and retrofit of Aramco’s existing plants across Saudi Arabia, and a Project Management Consultancy Long-Term Agreement (PMC LTA) covering engineering consultancy services for Aramco’s future investment projects. The original disclosures do not name specific process technology licensors or equipment suppliers for either the Habshan or Ras Tanura projects, so this information remains unconfirmed. SEG reported that it is simultaneously executing a number of major projects in Saudi Arabia during the first half: the Riyas NGL (Natural Gas Liquids) Project Packages P1 and P2 for Aramco and the Tank Farm and Integration Project with the SATORP refinery under the Saudi AMIRAL Project have each reached nearly 80% overall progress, while the Jafurah Gas Expansion Project Phase III has completed its design stage and exceeded 60% progress. The Haradh GOSP-3 project is reported to have exceeded 30% progress, and the Yanbu Green Hydrogen FEED project’s design progress is reported to have exceeded 80%.
In the earnings announcement, it is reported that SEG stated it would continue to strengthen its position in key overseas markets such as the Middle East, Central Asia and North Africa, while expanding into emerging business areas including green hydrogen, green ammonia and sustainable aviation fuel (SAF). It is also reported that the company is broadening its country footprint into markets including Uzbekistan, Australia, Korea and Singapore.
Implications for Korea’s Industry
It is reported that the continued expansion of Chinese engineering firms’ EPC contract volumes in the GCC’s refining and gas processing sector, together with their expansion into new markets including Korea, is intensifying competition for Korean construction companies operating in the same markets.
SEG has set a full-year 2026 target of US$5 billion in new overseas contracts, so it is reported that further Middle East awards in the second half of the year, along with the pace of its expansion into emerging sectors such as green hydrogen, will be worth monitoring.