Samsung Heavy Industries nears $2.5 billion FLNG order with Eni for Mozambique project

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Samsung Heavy Industries nears $2.5 billion FLNG order with Eni for Mozambique project

10:40 CAT | 15 Apr 2025

FILE - For illustration purposes only. Samsung Heavy Industries FLNG. [File photo: Courtesy of Samsung Heavy Industries]

Contract expected to enhance Samsung’s market share in FLNG sector amid rising global LNG demand

It was reported on April 14 that Samsung Heavy Industries is on the brink of securing a significant Floating Liquefied Natural Gas (FLNG) order worth over $2 billion.

This development comes as the Mozambican government recently approved Italian energy company ENI’s development plan for the Coral North gas field. The investment in this project is approximately $7.2 billion, with an annual production target of 3.55 million tons of LNG off the coast of Mozambique’s Rovuma Basin over the next 30 years, starting in the second half of 2028.

Samsung Heavy Industries, a leader in constructing complex offshore facilities, is expected to sign a formal contract soon for an FLNG order valued at $2.5billion.

The order surpasses the current backlog amounting to approximately 2.2 billion as of April 8, further solidifying their position in the FLNG sector. The shipbuilding industry anticipates that this contract will enhance Samsung’s reputation and market share, as they have already accounted for half of the ten FLNG projects ordered globally to date.

The significance of this deal is underscored by Samsung Heavy Industries’ successful delivery of an FLNG unit for the Coral South project in 2022, which was also led by ENI. The launch ceremony for Coral Sul FLNG in 2021 was attended by then Mozambican President Filipe Nyusi and his wife, highlighting the project’s importance to Mozambique’s economic growth and energy independence.

FLNG technology represents a “floating LNG factory,” allowing for natural gas extraction, liquefaction, storage, and offloading directly at sea. This technology is crucial for exploiting offshore gas fields that are too remote or small for onshore facilities. As one industry expert described it, FLNG units operate as “virtually a self-sufficient system,” emphasizing their technological complexity.

Mozambique’s natural gas reserves in the Rovuma Basin are pivotal to its economic strategy, with ENI playing a central role in developing these resources through projects like Coral North. The global LNG market has seen increased demand due to its lower carbon emissions compared to other fossil fuels, aligning with international efforts towards cleaner energy sources.

Additionally, U.S. sanctions on Chinese shipyards have intensified competition within the FLNG market, providing opportunities for companies like Samsung Heavy Industries to expand their influence and secure more orders.

Source: Business Korea