Samsung Heavy Industries Co. landed a preliminary 869.4 billion won ($635 million) contract to build a floating liquefied natural gas production unit for an African client, marking another step in the South Korean shipbuilder’s strategy to dominate the specialized FLNG market.
The agreement, representing 8.8% of Samsung Heavy’s 9.9 trillion won revenue last year, expires in September but can be extended through November. Industry sources indicate the facility will likely serve Mozambique’s Coral Norte gas field, where Italian energy giant Eni recently received government approval for a $7.2 billion development project.
Samsung Heavy controls roughly 55% of the global FLNG construction market, a sector that delivers double-digit profit margins compared to single-digit returns on conventional vessels. The company has aggressively pursued these high-value contracts as shipbuilders face pricing pressures in traditional segments.
The preliminary nature of the agreement reflects ongoing negotiations in Mozambique’s complex energy landscape, where security concerns and regulatory delays have hindered larger onshore LNG projects. Eni’s Coral Norte project is expected to start production in the second half of 2028, following its successful Coral Sul facility that began operations in 2022.
Samsung Heavy previously secured a $1.5 billion FLNG contract in North America and a record $3.4 billion order for LNG carriers from a Middle Eastern client this year.
