Delfin LNG Project Advances with Samsung Heavy Industries

Samsung Heavy Industries (SHI) has officially signed a $2.9 billion engineering, procurement, construction, and installation (EPCI) contract for the first floating liquefied natural gas (FLNG) vessel for the Delfin LNG export project in the US. This follows Delfin's final investment decision (FID) on the country's first offshore floating liquefaction project. The awarded FLNG vessel will have a nameplate capacity of 4.4 million tonnes per annum (mtpa).

Negotiations for Additional FLNG Units

SHI is currently in contract negotiations with Delfin for the second and third FLNG vessels, which Delfin plans to develop sequentially. The project's total capacity is touted at 13.2 mtpa, suggesting the next two units will be of the same size as the first. Delfin stated it would "diligently advance" toward FIDs for these additional units throughout the remainder of the year.

Strategic Implications and Market Position

SHI expects to play a leading role in establishing the LNG value chain in North America and strengthening its market position, given the strong likelihood of securing additional orders. The contractor noted that FLNG projects in the US are expected to expand in earnest, starting with Delfin LNG, which should positively impact SHI's medium to long-term revenue growth due to its "unrivalled competitiveness" in the sector. First LNG from the $5 billion initial development phase of the US Gulf export project is expected by 2030.

Industry Confidence and Execution Capabilities

At the signing ceremony, top-tier global partners demonstrated strong confidence in SHI's FLNG technology and project execution capabilities. SHI's CEO, Sung-an Choi, emphasized the company's commitment to proving its capabilities through world-class quality and on-time delivery.