Samsung Heavy Industries said Tuesday that it had secured an order worth 4.33 trillion won ($3.2 billion) for one floating liquefied natural gas production facility (FLNG) from a North American client.
According to a regulatory filing, the offshore facility is scheduled for delivery by July 2030. Construction will begin after the client issues a formal notice to proceed.
With the latest deal, Samsung Heavy Industries has won orders for a total of 28 vessels and offshore units worth $8.3 billion so far this year, achieving about 60% of its annual order target of $13.9 billion.
The company’s commercial shipbuilding division accounted for $5 billion in orders, or roughly 88% of its yearly target of $5.7 billion. The orders include 13 liquefied natural gas (LNG) carriers, including one LNG floating storage and regasification unit (FSRU), two very large ethane carriers (VLECs), four very large gas carriers (VLGCs), two container ships, and six crude oil tankers.
Its offshore business secured $3.3 billion in orders, including the newly announced FLNG project, representing approximately 40% of its annual offshore target of $8.2 billion.
Samsung Heavy Industries is considered a global leader in the FLNG sector, a high-value offshore business that combines natural gas production, liquefaction, storage, and offloading capabilities in a single floating facility.
The company previously built Prelude FLNG for Royal Dutch Shell, the world’s largest floating LNG production facility. Including the latest order, Samsung Heavy Industries has won contracts for seven out of the 11 FLNG units ordered globally to date, giving it an estimated 64% share of the worldwide FLNG newbuild market.
Industry analysts say demand for LNG infrastructure is expected to remain strong amid growing global energy security concerns and rising natural gas consumption, particularly in North America and Asia. The latest order is also seen as reinforcing Samsung Heavy Industries’ competitiveness in high-end offshore engineering and environmentally focused energy projects.
The shipbuilder has increasingly focused on LNG-related vessels and offshore facilities as part of its strategy to expand profitability through high-value-added projects.
