At Samsung Heavy Industries Co.’s massive shipyard on Geoje Island, South Gyeongsang province—about 390 km south of Seoul—hundreds of workers toiled under an unseasonably hot spring sun in early March, assembling a new offshore structure for Malaysia’s Petronas, one of the world’s top oil and gas companies.
The colossal structure, a floating liquefied natural gas (FLNG) production facility, weighs 50,000 tons and spans the length of 2.5 football fields. It is the world’s first near-shore FLNG plant, according to a Samsung Heavy official.
Unlike conventional offshore FLNG units, which extract and process gas at sea, this new structure functions as a maritime LNG terminal—liquefying and storing fuel before it is shipped to global markets.
Rising Demand for FLNG Facilities
FLNG units are among the most complex offshore structures, requiring three times the workforce per hour compared to conventional vessels.
“FLNG construction sometimes requires up to 2,500 workers simultaneously due to its complexity,” said Kim Hyun-ho, offshore plant production manager at Samsung Heavy, in an interview with The Korea Economic Daily.
Geopolitical Shifts Favor Korean Shipbuilders
Samsung Heavy and other Korean shipbuilders are poised to benefit from geopolitical shifts that have sidelined Chinese competition.
The U.S. government’s tougher stance on China is reshaping the global LNG supply chain. In January, the Trump administration imposed sanctions on China’s Zhoushan Wison shipyard—Samsung Heavy’s primary competitor in FLNG construction.
With the U.S. looking to expand LNG exports, major energy firms are increasingly turning to Korean shipbuilders. European and North American companies are also seeking to minimize reliance on Chinese yards.
Industry sources report that four energy firms—Italy’s Eni S.p.A., U.S.-based Delfin LNG, Canada’s Western LNG, and Norway’s Golar LNG—are expected to finalize FLNG construction contracts with Samsung Heavy soon.
Samsung Heavy has already begun work on Eni’s Mozambique FLNG project, with an official contract signing imminent, sources said.
Delfin LNG, which initially planned to involve China’s Wison for its second and third FLNG facilities, has now pivoted to Samsung Heavy.
The company is also in talks with global energy firms about FLNG projects in Argentina and Suriname.
With at least four FLNG orders expected, Samsung Heavy is projected to secure contracts worth approximately 8 trillion won ($5.5 billion) this year.
Unlike conventional commercial vessels, which typically yield single-digit margins, FLNG projects generate double-digit profit margins due to their technical complexity. Samsung Heavy currently holds a dominant 55% share of the global FLNG construction market.
The company’s expertise in FLNG construction dates back to 2011, when it won the industry’s first FLNG contract from Shell plc.
Expanding LNG Opportunities for Korean Shipbuilders
Samsung Heavy’s domestic rivals are also capitalizing on the surging demand for LNG-related projects.
HD Hyundai Marine Solution Co., the ship repair and maintenance unit of HD Hyundai Heavy Industries, stands to benefit from the growing demand to convert aging LNG carriers into floating storage and regasification units (FSRUs).
HD Hyundai Marine, the only Korean company with ship conversion technology for FSRUs, expects to secure its first order for LNG carrier conversions this year. Emerging economies such as Brazil, Indonesia, and Bangladesh—seeking to import U.S. LNG via sea routes—have shown strong interest in such conversions. Additionally, European nations traditionally reliant on Russian pipeline gas are exploring FSRUs as alternative supply solutions.
Meanwhile, Hanwha Ocean Co., which acquired Singapore-based floating facility manufacturer Dyna-Mac Holdings Ltd. last year, is also positioning itself for LNG-related offshore contracts in the coming months.