Samsung Heavy Industries Co. is poised to secure floating liquefied natural gas (FLNG) facility contracts worth 8 trillion won ($5.5 billion) this year as global energy firms pivot away from Chinese shipyards following US sanctions.
Four major energy companies – Italy’s Eni, US-based Delfin LNG, Canada’s Western LNG and Norway’s Golar LNG – are finalizing FLNG construction contracts with the Korean shipbuilder, according to industry sources.
The surge in orders follows the Trump administration’s January sanctions on China’s Zhoushan Wison shipyard, Samsung’s only serious competitor in FLNG construction. European and North American energy companies are now actively reducing their exposure to Chinese shipyards.
Samsung Heavy has already begun work on Eni’s Mozambique FLNG project, with formal contract signing expected soon. Delfin LNG, which initially planned to involve Wison for two of its four facilities, has redirected those projects to Samsung.
The Korean shipbuilder is also reportedly in discussions with unidentified energy firms about FLNG facilities for Argentina and Suriname.
Unlike conventional vessels with single-digit profit margins, FLNG units offer double-digit returns due to their technical complexity. Samsung, which controls 55% of the global FLNG construction market, builds these mammoth structures at its shipyard in Geoje, South Korea.
Other Korean shipbuilders are also capitalizing on the LNG boom. HD Hyundai Marine Solution expects its first order this year to convert aging LNG carriers into floating storage units, while Hanwha Ocean is targeting LNG-related offshore contracts following its acquisition of Singaporean floating facility designer Dyna-Mac.
