| SHI snares Shell FLNG trio |
| Samsung Heavy Industries (SHI) has won three more orders for floating LNG vessels from Royal Dutch Shell, four years after it clinched the deal for the world’s first FLNG vessel from the same customer. South Korea’s second-biggest shipbuilder said in a Korea Exchange filing on 1 July that the contract is valued at KRW5.2724 trillion (USD4.7 billion) for now, as the amount covers only manufacturing expenses for the hulls. The entire contract value will be confirmed only in the second half of 2016 when front-end engineering and design (FEED) is completed. The FLNG vessels will be built by 30 November 2023, while Prelude, the world’s first FLNG vessel is expected to be delivered to Shell in 2017. It will then be stationed off Western Australia. Prelude FLNG is expected to generate at least 5.3 million tonnes of LNG per annum. Aside from the FLNG orders from Shell, SHI is known to be in exclusive negotiations with Woodside Petroleum for the Browse FLNG project, which is also in Western Australia. Woodside also said on 1 July that it would commence FEED for the development. |