Samsung Heavy Industries Expected to Kick Off First Order of the Year with FLNG Project.

An FLNG Built by Samsung Heavy Industries

반응형

 

Samsung Heavy Industries (SHI) is expected to kick off its first order of the year with a Floating Liquefied Natural Gas (FLNG) production and storage facility.

 

According to industry sources on the 16th, SHI is likely to secure an order for the Coral Sul FLNG 2 project in Mozambique as early as this month. SHI had previously built the Coral Sul FLNG 1 for the same project and is currently working on production designs for the second unit. While contract negotiations are ongoing, last year’s order fell through due to delays on the client’s side.

 

However, SHI remains confident that the FLNG 2 order is virtually finalized. While the exact timing is uncertain, the contract signing is reportedly imminent.

 

Securing the Coral Sul FLNG 2 order would set the tone for SHI’s annual targets, making them more attainable. Each FLNG unit is valued at approximately KRW 2 trillion, meaning this project alone would account for a significant portion of SHI’s yearly revenue goal, providing a strong start to the year.

 

The shipbuilding industry anticipates a strong performance from SHI in the FLNG sector this year. SHI has already built five FLNG units, establishing itself as a market leader. In 2024, SHI is also seen as a strong contender for FLNG orders from U.S.-based LNG producer Delfin and Canadian energy company Western.

 

SHI’s position in the market is further bolstered by recent developments, such as the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) adding China’s Wison Shipyard to its Russia-related sanctions list. Wison, which had been expanding its presence in the FLNG sector and was involved in the conceptual design of Delfin’s FLNG 2, is now facing challenges in securing global orders. This situation is expected to lead to increased demand for SHI’s FLNG capabilities from potential clients.

 

In addition, expectations for a second term for the Trump administration, coupled with the anticipated expansion of global LNG investments and production, could further drive demand for SHI’s FLNG solutions.

A representative from SHI commented, “The demand for FLNG units is steadily increasing, and we aim to secure one to two orders per year to maintain our competitive edge.”