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Samsung Heavy Wins $230M Order to Build FSRU Vessel in Norway

Samsung Heavy

A Samsung Heavy Industries’ 145,000-cubic-meter FSRU delivered to Norway-based Hoegh LNG Holdings in 2009.

Samsung Heavy Industries Co. (SHI), a major shipyard in South Korea, has clinched a 270 billion won (US$230.47 million) deal from Norway’s floating liquefied natural gas (LNG) service provider to build an offshore plant. The deal will worth 1.08 trillion won (US$921.9 million), including options.

Samsung Heavy Industries Co announced on January 18 that it has signed a contract with Norway-based Hoegh LNG Holdings Ltd. to build a 170,000-cubic-meter LNG floating storage and regasification unit (FSRU). A FSRU is a facility that liquefies natural gas on the sea, instead of the land, and transfer it to the land.

Since it is economically better to supply power directly from the sea than building a LNG importing terminal on the land, demand for the facility is growing in Middle East, Southeast Asia and Latin America in where imports of gas for electric power generation and industrial uses are on the increase.

SHI plans to deliver the FSRU vessel to Hoegh LNG Holdings by May 2019. As Samsung has an option to build three more FSRU units under the deal, the size of the deal will exceed 1 trillion won (US$853.61 million) when Hoegh LNG Holdings places an additional order.

The Original Posted by Jung Min-hee/Business Korea

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