Samsung Heavy wins $1.5 bn order for FLNG

South Korea's shipbuilder Samsung Heavy Industries announced on Tuesday that it has secured an order for one floating liquefied natural gas (FLNG) production facility from a North American firm.

The order amount is $1.5 billion (2.01 trillion won). Samsung Heavy Industries cautioned that the deal is a conditional contract subject to the final investment decision of the client.

Samsung Heavy Industries formed a consortium with the US engineering company Black & Veatch and signed an engineering, procurement, and construction (EPC) contract for the design, procurement, and construction of the FLNG.

As part of the agreement, the company will be responsible for the hull and topside plant processes of the FLNG.

With this contract, Samsung Heavy Industries has increased its FLNG order backlog to two units. The company explained that this contract, signed on Dec. 29 last year, is included in the order performance for the same year.

Consequently, its cumulative order intake for last year amounted to $8.3 billion, achieving 87% of its annual order target of $9.5 billion.

Write to Jae-Fu Kim at hu@hankyung.com