Samsung Heavy Industries is on the verge of signing a contract with Norway’s Golar LNG to build a floating liquefied natural gas (FLNG) facility. The deal, which involves supplying an FLNG capable of producing up to 5.4 million tons of LNG annually, is expected to further solidify the South Korean shipbuilder’s leading position in the global market.
According to Norwegian shipping and energy sources, including TradeWinds, Golar LNG CEO Karl Fredrik Staubo revealed during a Q1 earnings call on May 27 (local time) that the company is “evaluating three FLNG proposals and engaging in detailed discussions.”
The companies under consideration are Samsung Heavy Industries, China’s CIMC Raffles (a subsidiary of CIMC), and Singapore’s Seatrium. Samsung Heavy has proposed an FLNG based on the Mark III membrane cargo containment system, with an annual production capacity of 3.5 to 5.4 million tons. The company has completed the front-end engineering design (FEED) and is ready for engineering, procurement, and construction (EPC). Meanwhile, CIMC Raffles is competing with an FLNG that can produce up to 3.5 million tons, using the less insulated Mark II system. Despite this, its cost competitiveness remains strong at $620 million per million tons per annum (MTPA). Seatrium has offered an FLNG equipped with a Mark I containment system and a maximum annual output of 2.7 million tons.
Golar LNG is currently negotiating pricing and detailed schedules. The company aims to order up to two vessels this year, with plans to proceed with construction on at least one even if a charter agreement isn’t finalized in advance. However, to manage risk, Golar LNG will not build both units without confirmed customer demand.
Golar LNG Chief Technical Officer Morten Skjong reiterated that the company intends to finalize at least one EPC contract, stating, “Regardless of the chosen design, we expect to proceed within this decade.”
With Golar LNG accelerating its FLNG orders, expectations are rising for Samsung Heavy to secure the deal. The Korean shipbuilder has already won five out of the nine FLNG orders placed worldwide, cementing its dominance in the market. In February, it delivered the “PFLNG TIGA” for Malaysia’s state-owned Petronas, showcasing its competitive edge. Samsung Heavy is also in talks with Italy’s Eni, the U.S.’s Delfin, and Canada’s Western LNG for additional FLNG projects, potentially securing orders worth around $57.98 million.
