Samsung Heavy Industries wins $2 bn FLNG Facility contract

FLNG Coral-Sul [Courtesy of Samsung Heavy Industries]

Samsung Heavy Industries has won a contract worth $2 billion to construct a Floating Liquefied Natural Gas (FLNG) facility, furthering its presence in the global market presence. The contract, signed with a North American client, highlights Samsung’s expertise and dominance in the FLNG sector.

The announcement came on Tuesday as the South Korean shipbuilder disclosed the signing of an Engineering, Procurement, and Construction (EPC) agreement with an undisclosed North American entity. Samsung Heavy Industries formed a consortium with U.S.-based engineering firm Black & Veatch to build the FLNG facility. The contract, valued at 2.01 trillion ($1.53 billion), is subject to the final investment decision by the client, with execution to commence once the decision is made. Samsung Heavy Industries will carry out the design and construction process for the FLNG hull and superstructure.

With this contract, Samsung expands its FLNG order book to two units, diversifying its portfolio beyond LNG carrier vessels to encompass marine plants as well.

The company’s proactive approach to securing major contracts is evident from its previous deals, including a $1.5 billion agreement signed in 2023 with Malaysia’s Petronas for an FLNG facility. Continuing this momentum, Samsung Heavy Industries aims to pursue aggressive bidding in regions such as Africa’s Mozambique and the United States in 2024.

Samsung Heavy Industries’ dominance in the FLNG sector is noteworthy, with the company clinching contracts for five out of the total seven FLNG facilities globally. This success is attributed to its continuous investment in innovative technological research since 2006 and its record of reliable production experiences.

FLNG facilities present an efficient solution for offshore gas processing, offering cost-effective and swift construction compared to onshore gas plants. Their suitability for mid-sized offshore gas fields, where large-scale infrastructure investments like pipelines may not be feasible, makes them a preferred choice.