Samsung Eng. wins plant design deal from Texas LNG

South Korea’s Samsung Engineering Co. has won a deal to design a liquefied natural gas plant in Texas, taking a step forward to secure a turnkey contract for the project.

Samsung said on Thursday it has signed a Pre-FID Engineering deal with Texas LNG Brownsville LLC on the construction of an LNG liquefaction plant with an annual production capacity of 4 million tons for export. Samsung declined to provide the deal’s value, citing “the client’s circumstances.”

“We will successfully complete the design works to win a related EPC deal,” said a Samsung official, referring to an engineering, procurement and construction contract. The South Korean company has a minority stake in Texas LNG, owned by US Glenfarne Group, LLC.

Samsung joined the project from the early stages, completing a basic process design, as well as a front-end engineering design (FEED) for approval from the US Federal Energy Regulatory Commission.

Under the latest deal, the engineering company is set to upgrade the existing FEED and calculate the EPC budget.

JV WITH TECHNIP ENERGIES

Samsung is scheduled to conduct the work in 11 months along with Technip Energies USA, Inc., according to Samsung. Technip is a major technology and global EPC and project management company that has delivered more than 20 percent of operating LNG capacity worldwide. 

Texas LNG said it has executed the agreement with Samsung and Technip to lead the delivery of the facility via a joint venture.

Under a project financeable structure, the two companies will be responsible for all facets of the liquefaction facility’s delivery including engineering, construction coordination, start-up, and commissioning, Texas LNG said in a statement.

Texas LNG expects to achieve a final investment decision in 2022 and begin commercial operations in 2026. It is located in southern Texas on the Port of Brownsville’s deepwater ship channel with pipeline access to the vast Permian and Eagle Ford gas basins.

Write to Kyung-Min Kang at kkm1026@hankyung.com
Jongwoo Cheon edited this article.