December 23, 2024

Samsung Receives $4.7 Billion FLNG Facility Construction Contract from Shell

On July 4, 2015, according to foreign media reports, South Korea’s Samsung Heavy Industries has received a US$4.7 billion contract from Shell’s natural gas and power company based in the Netherlands. According to the contract, Samsung Heavy Industries will build for Shell. A floating liquefied natural gas (FLNG) facility.

According to the contract, which has come into effect on June 30, Samsung Heavy Industries will have to deliver the three FLNG facilities to Shell before November 30, 2023.

Samsung Heavy Industries stated that the $4.7 billion contract value includes only the hulls for the construction of three FLNG facilities, and the rest of the contract (including the deck) will be signed in the second half of 2016, and the value of the contract may increase at that time.

Samsung Heavy Industries of South Korea also participated in the construction of Shell's first FLNG facility for the Prelude gas field in Western Australia. The Prelude gas field is tentatively planned to begin production in 2016.

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