Samsung Heavy Industries wins order for FLNG vessels

2 September 2013 (Last Updated September 2nd, 2013 18:30)

South Korean shipbuilder Samsung Heavy Industries (SHI) has secured a $400m order from Flex LNG for the construction of two floating liquefied natural gas (FLNG) vessels.

FLNG -SHI- Flex LNG

South Korean shipbuilder Samsung Heavy Industries (SHI) has secured a $400m order from Flex LNG for the construction of two floating liquefied natural gas (FLNG) vessels.

SHI will be responsible for the design, engineering, construction and commissioning of the two 174,000m³ tri-fuel diesel electric (TFDE) FLNG carriers.

The parties have agreed to redeploy $210m from payments already made to the South Korean shipbuilder, which will be used as the first instalment for the two vessels.

The rest of the money will be paid to SHI on delivery of the vessels, which is scheduled for the first quarter of 2017.

SHI and Flex LNG have also agreed to investigate the use of the ME-GI propulsion system for the FLNG carriers.

Flex LNG will jointly operate the new FLNG units together with LNGL, which is a joint venture between InterOil and Pacific LNG.

Separately, SHI has received a deal valued at $550m from an unnamed customer for the construction of a drillship by December 2015.

Including the two new orders, SHI has received approximately $11.6bn so far this year, achieving 89% of its annual order target of $13bn.


Image: Samsung will start delivery of the two 174,000m³ tri-fuel diesel electric (TFDE) FLNG carriers in the first quarter of 2017. Credit: Samsung Heavy Industries.