Samsung Heavy Industries inks $1.5B FLNG order

Jan. 5, 2024
Shipbuilder Samsung Heavy Industries has received a $1.5 billion order to build a floating liquefied natural gas (FLNG) facility in North America.

Offshore staff

OVERLAND PARK, Kansas — LNG infrastructure solutions company Black & Veatch signed a heads of agreement (HOA) with Cedar LNG Partners LP and Samsung Heavy Industries (SHI) last month to secure capacity in SHI’s shipyard to support Cedar LNG’s targeted commercial startup in Kitimat, British Columbia.

The HOA also calls for the stakeholders to work together to exclusively advance the engineering, procurement and construction (EPC) agreement for the proposed FLNG facility.

All parties were working diligently to achieve a lump sum EPC agreement in December, with a final investment decision (FID) by Cedar LNG shortly after.

This export facility will use a near-shore FLNG vessel utilizing Black & Veatch’s PRICO liquefaction technology integrated with the hull and LNG storage tanks. Black & Veatch will be responsible for complete topside design and equipment supply.

Various news reports stated that SHI said earlier this week that it has received a $1.5 billion order to build a FLNG facility in North America. SHI formed a consortium with US engineering company Black & Veatch to sign an EPC contract to build the FLNG facility by February 2028, SHI said in a statement.

Undisclosed by SHI, the client is most likely Haisla Nation and Pembina Pipeline Corp., a partner in the development of the proposed Cedar LNG project, which confirmed the order had been placed to SHI-Black & Veatch consortium.

01.05.2024