ARKANSAS, January 3 (Future Headlines)- Samsung Heavy Industries Co., the world’s third-largest shipbuilder, has announced a groundbreaking achievement by securing a $1.5 billion order to construct a Floating Liquefied Natural Gas (FLNG) facility in North America. The company, in collaboration with U.S. engineering firm Black & Veatch, signed an Engineering, Procurement, and Construction (EPC) contract to complete the FLNG facility by February 2028. While the shipper’s name remains undisclosed, this significant order contributes to Samsung Heavy Industries’ impressive performance in 2023, where it achieved 87% of its annual order target, securing a total of $8.3 billion worth of orders. The shipbuilder’s robust performance is further emphasized by its substantial three-year order backlog, valued at $31.9 billion.
Samsung Heavy Industries, renowned for its expertise in shipbuilding and engineering, is set to embark on a transformative project to construct a Floating Liquefied Natural Gas (FLNG) facility in North America. The $1.5 billion order, a testament to the company’s prowess in the industry, was secured through a consortium with U.S.-based engineering company Black & Veatch. The Engineering, Procurement, and Construction (EPC) contract signed between the consortium and the undisclosed shipper outlines the commitment to delivering the FLNG facility by February 2028.
The FLNG facility, also known as LNG Floating Production Storage and Offloading (FPSO) units, represents a cutting-edge solution for liquefied natural gas production. Samsung Heavy Industries will leverage its engineering capabilities, coupled with the expertise of Black & Veatch, to bring this innovative facility to fruition. While specific details about the project’s technical aspects are not provided, FLNG facilities typically involve the construction of a floating vessel equipped with liquefaction units, storage tanks, and offloading capabilities.
The collaboration with Black & Veatch, a prominent U.S. engineering company, adds a layer of expertise to the consortium. Black & Veatch’s experience in providing comprehensive engineering solutions aligns with Samsung Heavy Industries’ capabilities, creating a synergistic partnership for the successful execution of the FLNG project. The combination of Samsung Heavy Industries’ global reputation and Black & Veatch’s engineering proficiency positions the consortium as a formidable force in the LNG infrastructure sector.
Samsung Heavy Industries’ success in securing the $1.5 billion FLNG order reflects its outstanding performance throughout 2023. The company achieved a total of $8.3 billion worth of orders during the year, marking an impressive accomplishment and reaching 87% of its annual order target of $9.5 billion. This significant order intake is indicative of Samsung Heavy Industries’ strong market position and the demand for its advanced engineering and shipbuilding capabilities.
The diverse portfolio of orders secured by Samsung Heavy Industries underscores its versatility in meeting the demands of various segments within the maritime and energy industries. While specific details about the breakdown of orders are not provided, the company’s ability to secure contracts across different sectors positions it as a reliable and sought-after player in the global shipbuilding market.
Achieving 87% of its annual order target affirms Samsung Heavy Industries’ resilience and adaptability in a competitive market. The company’s success in securing substantial orders is a result of its commitment to innovation, quality, and meeting the evolving needs of its clients. The FLNG project, constituting a significant portion of the annual orders, further solidifies Samsung Heavy Industries’ strategic positioning in the global shipbuilding and engineering landscape.
In addition to its impressive performance in securing orders in 2023, Samsung Heavy Industries boasts a formidable three-year order backlog valued at $31.9 billion. This substantial backlog provides the company with a strong foundation for future projects and underscores its long-term viability. The diverse range of projects contributing to the backlog positions Samsung Heavy Industries as a key player with sustained growth prospects.
The significant order backlog serves as a testament to Samsung Heavy Industries’ strategic positioning in the shipbuilding and engineering sectors. With a broad spectrum of projects in the pipeline, ranging from conventional shipbuilding to cutting-edge LNG infrastructure, the company is well-positioned to navigate market fluctuations and capitalize on emerging opportunities.
Reporting by Moe Khaled; Editing by Sarah White