Samsung Heavy Industries secures $2.5b contract

Samsung Heavy Industries has secured a deal worth $2.5 billion to build a liquefied natural gas facility off the coast of Mozambique, the company said Friday.

The deal is part of the Coral South project led by Italy’s state-run energy firm Eni and other partner companies.

Under the contract, Samsung Heavy Industries will construct a floating natural gas production facility by 2020. The construction is expected to begin in 2019, according to the company. 

The facility, which measures 439 meters in length, 65 meters in width, 38.5 meters in depth and weighs some 210,000 tons, will be able to produce 3 million tons of LNG and 480,000 tons of condensate annually.

Including the latest contract, the company has landed contracts worth $4.8 billion in total this year for the building of 13 vessels.

They include eight tankers, two LNG carriers, a LNG floating storage regasification unit, a floating liquefied natural gas, and a floating production unit.

Italy’s state-run energy firm Eni and China Petroleum Corp. have 50 percent and 20 percent stakes in the Mozambique project, respectively. Korea’s state-run Korea Gas also has a 10 percent share in the joint venture.

By Shim Woo-hyun (ws@heraldcorp.com)