Samsung Heavy Industries is close to securing a $2.5 billion contract to build a Floating Liquefied Natural Gas (FLNG) facility off Mozambique, following the Mozambican government’s recent approval of Italian energy company ENI’s development plan for the Coral North gas field.
The contract represents a strategic win for the South Korean shipbuilder, surpassing its current backlog of approximately $2.2 billion as of April 8. The project will solidify Samsung’s dominance in the FLNG market, where it has already constructed three of the four such facilities ordered globally to date.
ENI’s investment in the Coral North project totals about $7.2 billion with ambitious production targets. The facility will produce 3.55 million tons of LNG annually from Mozambique’s Rovuma Basin over the next 30 years, beginning in the second half of 2028.
The deal builds on Samsung’s previous success with ENI’s Coral South project. The Coral-Sul FLNG vessel, delivered in 2022, was the first floating LNG facility in Africa’s deep waters and positions Samsung to capitalize on growing demand for offshore gas processing capabilities.
Industry analysts note that U.S. sanctions on Chinese shipyards have intensified competition within the FLNG market, creating opportunities for South Korean builders. The technology allows natural gas extraction, liquefaction, storage, and offloading directly at sea, eliminating the need for onshore infrastructure in remote locations.
This contract would put Samsung on track to exceed its annual sales target of $9.7 billion for the year, according to industry sources.
