Samsung Heavy Industries lines up $1.5 billion FLNG deal with U.S. partner

The Korean shipbuilder is linking arms with U.S. construction company Black & Veatch to lock in a 2.01 trillion won ($1.5 billion) order to build a floating liquefied natural gas (FLNG) facility for an undisclosed North American shipper.

An FLNG facility built by Samsung Heavy Industries [SAMSUNG HEAVY INDUSTRIES]

Korean shipbuilder Samsung Heavy Industries is lining up a 2.01 trillion won ($1.5 billion) order with a U.S. partner to build a floating liquefied natural gas (FLNG) facility for an undisclosed North American shipper.

Samsung Heavy is pursuing the deal with U.S. engineering company Black & Veatch through an engineering, procurement, and construction (EPC) contract, conditional on the final investment decision of the client.

The project aims to deliver the FLNG facility by the end of February 2028, the Korean shipbuilder said Tuesday. Samsung Heavy would also execute EPC projects for the FLNG's hull and topside components.

"Along with the increasing global demand for LNG, the demand for FLNG is expected to continue growing especially given its competitive delivery advantages compared to onshore LNG plants," a Samsung Heavy official said. "We have numerous projects currently in the Front End Engineering Design (FEED) phase or in the development stage, which we believe we can continue to secure orders for 1 to 2 FLNG units annually."

In the fiscal year 2023, Samsung Heavy Industries secured orders totaling $8.3 billion, accounting for 87 percent of its annual order target of $9.5 billion, the company said.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]