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JGC Corporation

Japan

 

Date: May 2003 - Unclear

Deal: In May 2003, JCG Corporation reported on its website that it had won a contract to build a large-scale gas processing plant in Iran in a joint venture with Toyo Engineering Corporation, the South Korean firm Daelim and the Industrial Development & Renovation Organization of Iran. The contract, awarded by Petropars Ltd., a subsidiary of the National Iranian Oil Company (NIOC) provides for the construction of a plant in the Bandar Assaluyeh region (JGC Corporation Press Release, May 19, 2003). According to the Japan Corporate News Network, the deal is worth approximately $1.2 billion, and construction is expected to be completed in late 2006 (JCN Network, May 19, 2003).

Offshore-Technology reported that in March 2008, the Iranian oil ministry had announced that the project would come on stream in the next Iranian year (which began on March 20, 2008) (Offshore-Technology.com, accessed June 25, 2010). It is not clear if the project has begun.

Date: March 2004 – June 2004

Deal: Norton Rose reported that in March 2004 the Iranian Offshore Oil Company (IOOC) awarded JGC a contract worth $1.26 billion. Under the terms of the agreement, JGC would process gas recovered from the Soroush, Nowrooz, Foroozan, and Abuzar fields into ethane, propane, pentane, condensates, methane and butane at the Kharg Petrochemical Complex (Iran Energy Report, August 2004). In the deal, JGC leads a consortium that includes Daewoo Engineering and Construction, Iran Marine Industries Company (Sadra) and Sazeh Consultants. "The JGC led consortium recently threatened to pull out of the deal on the basis of increased costs" (Iran Energy Report, August 2004).

An industry publication reported that as of June 2004, both JGC and Daewoo pulled out of the contract, but that their two Iranian partners continued to look for international firms to join them in order to fulfill the contract (Middle East Economic Digest, June 18, 2004).

Date: May 2004 - Unclear

Deal: JGC Corporation announced on its website that the National Iranian Oil Engineering and Construction Company had awarded it and Tomen Corporation a contract for the Arak Refinery Expansion and Products Upgrading Project. The deal, worth approximately $25 million, would have expanded the 150,000 bpd facility to 250,000 bpd, and work was scheduled to be completed by the second quarter of 2005 (JGC Corporation Press Release, May 11, 2004). It remains unclear whether JGC completed this project, but various reports indicate that work on the Arak refinery upgrade is ongoing.

U.S. Business Ties: JGC has a wholly-owned subsidiary in the United States, JGC America, with offices in Houston, Texas. According to the company's 2009 annual report, JGC America provides engineering and construction services (JGC Annual Report 2009, March 31, 2009).

Between 2000 and 2009, JGC Corporation received over $1.1 million from the U.S. government, primarily from the Department of Defense, according to USASpending.gov (USASpending.gov, accessed July 9, 2014).

Last Updated : July 9, 2014