Talks on USD 2 Billion FLNG Order at SHI Fall Through

South Korean shipbuilder Samsung Heavy Industries (SHI) said that the deal on construction of a floating liquefaction storage and offloading (FLNG) unit with an undisclosed partner has been scrapped.

The USD 2 billion worth order has fell through as the client decided not to proceed with the investment due to changes in Equatorial Guinea LNG production projects, the shipbuilder said in a filing to Korea Stock Exchange earlier today.

Order details indicate that the client behind the order is Houston-based Excelerate Energy which was in talks with Samsung on potential FLNG order.

The FLNG was supposed to be employed on Ophir Energy’s Fortuna LNG project, Equatorial Guinea.

However, as Ophir Energy signed a binding heads of terms for a midstream chartering and operating services agreement with Golar LNG in Equatorial Guinea in May this year, Excelerate was no longer part of the plans.

The deal established the key commercial terms for Golar to build, operate and maintain the floating liquefaction and storage vessel and facilities at Ophir’s operated Fortuna FLNG project in Block R, Equatorial Guinea. The vessel to be used will be Golar’s Gimi FLNG vessel.