Samsung Heavy scores FLNG order

South Korean shipbuilding giant Samsung Heavy Industries has secured an order for one floating liquefied natural gas (FLNG) unit.

SHI said on Tuesday the order won from an owner in North America is worth 2.01 trillion won ($1.56 billion).

However, this is a conditional contract and remains subject to a final investment decision on the project, according to SHI.

SHI formed a consortium with US engineer Black & Veatch and signed an engineering, procurement, and construction (EPC) contract for the design, procurement, and construction of the FLNG, it said.

Under the deal, the shipbuilder is responsible for the hull of the FLNG and topside plant processes.

It plans to deliver the unit by February 2028.

SHI said the deal was signed on December 29, 2023, and was included in last year’s orderbook.

This is the second FLNG contract for SHI as the shipbuilder and Japan’s JGC won a contract last year from Malaysia’s Petronas to build the first nearshore FLNG with a capacity of about 2 million tonnes.

In addition to this $1.5 billion FLNG contract, it also won orders for seven LNG carriers worth about $1.8 billion.

SHI in total won $8.3 billion worth of orders in 2023, achieving 87 percent of the annual order target of $9.5 billion.

Cedar LNG

SHI did not reveal the name of the owner.

This order is related to the Cedar floating LNG project, and the JV confirmed the award of the EPC contract to SHI and Black & Veatch in a statement released on January 4.

Canada’s Pembina Pipeline and the Haisla Nation signed a heads of agreement in November last year with Black & Veatch and SHI to secure access to shipyard capacity for their Cedar floating LNG export project.

Cedar LNG said the deal provides the JV, on an exclusive basis with SHI and Black & Veatch, to “secure access to shipyard capacity to meet Cedar LNG’s target commercial operations date.”

The JV said at the time the parties expect to finalize a lump sum engineering, procurement, and construction agreement in December.

Pembina and the Haisla Nation each own 50 percent in the Cedar LNG project.

Last year, Black & Veatch and SHI won the front-end engineering and design (FEED) contract for the project’s proposed floating liquefaction, storage and offloading unit (FLNG).

The $2.4 billion FLNG project will have a capacity of about 3 mtpa and will source natural gas from the prolific Montney resource play in northeast British Columbia.

Moreover, Cedar LNG plans to receive feed gas from the Coastal GasLink pipeline, which will supply the giant Shell-led LNG Canada export plant near Kitimat.

The floating LNG facility will also be located near the LNG Canada plant and will be powered by renewable electricity from BC Hydro.

In December, Pembina Pipeline and the Haisla Nation postponed the final decision on their floating LNG export project.

They now plan to take FID by the end of the first quarter.

(Updated to say that Cedar LNG confirmed the FLNG order.)

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