Samsung Heavy Industries Wins 2 Trillion KRW FLNG Order for One Unit... Achieves 87% of Last Year's Orders

Samsung Heavy Industries announced on the 2nd that it has secured an order worth 2 trillion KRW for one Floating Liquefied Natural Gas (FLNG) production facility from a North American client. By hitting a 'jackpot' in orders during the year-end and New Year period, the company has secured stable work opportunities.

On the 29th of last month, Samsung Heavy Industries formed a consortium with the U.S. engineering company Black & Veatch and signed an EPC contract for this FLNG project. The contract amount is 2.01 trillion KRW (approximately 1.5 billion USD), and it is a conditional contract pending the client's final investment decision.

FLNG refers to an offshore LNG plant capable of extracting natural gas, liquefying, storing, and offloading it at sea. Although demand for FLNG had somewhat contracted due to strengthened carbon emission regulations, it has recently regained attention as an environmentally friendly option. It is expected that the market will grow because FLNG requires less investment than onshore plants, is eco-friendly, and is easily movable. Samsung Heavy Industries will undertake the EPC processes for the FLNG hull and topside plant.

The large FLNG 'Coral Sul' built by Samsung Heavy Industries. Photo by Samsung Heavy Industries

With this contract, Samsung Heavy Industries has increased its backlog of large FLNG orders to two units, securing stable offshore work and reaffirming its unrivaled competitiveness in the FLNG sector.

A Samsung Heavy Industries official stated, "With the global increase in LNG demand, the demand for FLNG, which has delivery competitiveness compared to onshore LNG plants, is expected to continue growing. There are several projects currently in the Front-End Engineering Design (FEED) stage or development phase, so we expect to maintain an order intake of one to two FLNG units per year."

The FLNG order secured this time was finalized at the end of last year and thus counted toward last year's order performance. As a result, Samsung Heavy Industries' cumulative order performance for last year reached 8.3 billion USD, achieving 87% of the annual order target of 9.5 billion USD.

This content was produced with the assistance of AI translation services.