World's 5th largest shipbuilder seals $637 million deal for offshore LNG plant in Africa
Samsung Heavy Industries secured a $637 million contract to construct an FLNG facility in Mozambique to capitalize on its vast natural gas reserves.
The facility will produce, liquefy, and store natural gas at sea, contributing to Mozambique's goal of becoming a major LNG exporter.
Africa's role in the global LNG market is expanding attractively to Asian firms seeking energy investment opportunities.
The agreement, signed with South Korea's Samsung Heavy Industries, will see the company deliver a state-of-the-art FLNG platform to tap into Mozambique's vast offshore gas reserves.
According to South Korean news agency Yonhap, Samsung Heavy Industries signed an initial contract with a European shipping company operating in Africa to build the floating LNG facility. A company spokesperson noted that the final agreement will be signed at a later date.
'Countries have shown increased interest in energy security following the Russia-Ukraine war, and investments in offshore energy production facilities are expected to grow amid U.S. President Donald Trump's shifting energy policies, ' the company said.
The project highlights Africa's expanding role in the global LNG market and reflects growing interest from Asian engineering and shipbuilding firms in the continent's energy sector.
LNG investment surges in Mozambique
The International Energy Agency estimates that Africa will require $200 billion (12.7 trillion meticals) annually by 2030 to achieve universal access to modern energy.
Mozambique, with an estimated 100 trillion cubic feet of natural gas, is central to this goal and is seeking additional investment to develop its vast reserves.
Samsung Heavy Industries has played a key role in Mozambique's rise as a global LNG player.
Its first project, Coral Sul FLNG, developed with Eni and CNPC, was the world's first ultra-deepwater floating LNG plant and marked Mozambique's entry into LNG production in 2022.
Building on that success, Samsung has now secured a $637 million contract to build a second FLNG facility for a European shipping company.
The FLNG facility will allow for the production, liquefaction, and storage of natural gas directly at sea, eliminating the need for expensive onshore infrastructure.
It supports Mozambique's broader goal of monetizing its estimated 100 trillion cubic feet of natural gas and establishing itself as a major exporter in the global LNG market. The project aligns with Mozambique's broader ambition to become a leading LNG exporter.
Other energy giants, including TotalEnergies, have also expressed interest in restarting work on Mozambique's $20 billion LNG project, aiming to begin production by 2029.
Industry analysts view the FLNG deal as a key step toward strengthening global energy security and diversifying gas supply routes amid continued volatility in traditional markets.
Construction is expected to begin later this year, with delivery set for 2027.
The Korean company said the contract reflects growing global confidence in its offshore engineering expertise.
Samsung Heavy Industries has already secured $3.3 billion in orders this year—34% of its $9.8 billion target. Its order backlog stands at $26.5 billion, enough to sustain operations for the next three years.
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