Samsung Heavy Industries has formalized the main construction contract for the first Delfin FLNG unit, the United States' first offshore liquefied natural gas (LNG) export project. Samsung Heavy Industries is also negotiating contracts for the second and third units that Delfin is pursuing, raising expectations for additional orders in the North American FLNG market.
Samsung Heavy Industries said on the 10th that it held a signing ceremony for the main contract of the "Delfin FLNG project" in Washington, D.C., on the 9th local time. The event officially launches the $2.9 billion (about 4.3 trillion won) construction contract for the first Delfin FLNG unit that Samsung Heavy Industries disclosed on the 2nd.
The Delfin FLNG project is the first case in U.S. history in which an LNG export project using the offshore FLNG method has reached a final investment decision (FID). FLNG is a floating facility that can liquefy, store, and offload natural gas offshore. Samsung Heavy Industries expects this project to spur the expansion of offshore FLNG business in the United States.
Samsung Heavy Industries said it is also negotiating contracts for the second and third FLNG units that Delfin is pursuing sequentially. A Samsung Heavy Industries official said, "If we secure the follow-on units, our role will grow in the process of building the North American LNG value chain."
Attending the signing ceremony were Vice Chairman Choi Sung-an of Samsung Heavy Industries; Dudley Poston, chief executive officer (CEO) of Delfin Midstream; Jason Kalisman, CEO of Talisman Group; James Burner, partner at BlackRock Global Infrastructure; Takeshi Hashimoto, chairman of MOL; and Carlos Wheelock, head of Vitol LNG Americas.
U.S. and Korean government officials also attended the event. Kyle Housetveit, Deputy Minister at the U.S. Department of Energy (DOE); Steve Cernak, Administrator of the U.S. Maritime Administration (MARAD); and Ambassador to the United States Kang Kyung-hwa were present.
Vice Chairman Choi Sung-an of Samsung Heavy Industries said, "At the Delfin FLNG signing ceremony, global top-tier partners gathered to show complete confidence in Samsung Heavy Industries' FLNG technological prowess and project execution capabilities," adding, "We will prove our capabilities with world-class quality and rigorous on-time delivery."