Samsung Heavy Loses $4.6-bln FLNG Order

April 29, 2016

 South Korea’s shipbuilder Samsung Heavy Industries (SHI), the world’s third-largest shipbuilder,  has received a contract termination for three floating liquefied natural gas (FLNG) units from oil and gas giant Royal Dutch Shell Plc.

 
The deal for the three vessels, worth a total of KRW 5.3 trillion (USD 4.6 billion), was signed between the companies in June 2015.
 
The contract fromShellwas voided because of the current difficult market conditions, the Sungnam, South Korea-based company said in a regulatory filing.
 
The three FLNGs were expected to join their owner by the end of November 2023.
 
With the slump in the shipbuilding market post the global economic crisis SHI had set its sights on offshore accounting for 70% of orderbook in the long term.
 
Samsung Heavy is currently building two other floating LNG facilities for Shell and Petroliam Nasional Bhd. of Malaysia. The first project is expected to complete work at the shipyard in the second half of this year, the company said.
 

Logistics News

Ship Design, Maritime Accidents and There’s a Master on the Run

Ship Design, Maritime Accidents and There’s a Master on the Run

Maersk: Effective US Tariffs Average Around 21% Currently

Maersk: Effective US Tariffs Average Around 21% Currently

US Grain Shipments Surge 9% in face of Chinese Tariffs

US Grain Shipments Surge 9% in face of Chinese Tariffs

Great Lakes Limestone Trade Up in June

Great Lakes Limestone Trade Up in June

Subscribe for Maritime Logistics Professional E‑News

Russia strikes Kyiv hours after Trump and Putin's call with the largest drone attack
France joins European push to bring satellite internet to trains
The discount on Russian Urals oil sent to India has been the lowest since 2022.