Samsung Heavy Industries Gets $1.5B FLNG Order

(Credit: Cedar LNG)
(Credit: Cedar LNG)

Samsung Heavy Industries (SHI) has secured an engineering, procurement and construction (EPC) contract for a new floating LNG production unit worth $1.5 billion.

SHI formed a consortium with Black & Veatch for the delivery of the new FLNG unit, subject to final investment decision for the project (FID) being developed by the 'North American client'.

Undisclosed by SHI, the client is most likely Haisla Nation and Pembina Pipeline Corporation (Pembina), a partner in the development of the proposed Cedar LNG project, which confirmed the order had been placed to SHI-Black & Veatch consortium

“This is a critical milestone on our path towards a FID for Cedar LNG, the first Indigenous majority-owned LNG project in the world. We have secured world class FLNG expertise and look forward to working with SHI and Black & Veatch to build an LNG facility with one of the cleanest environmental profiles in the world that will usher in a new era of low carbon, sustainable LNG production,” said Doug Arnell, Cedar LNG Chief Executive Officer.

“Our role in helping Cedar LNG make history on this world-class facility aligns with our commitment to deliver a reliable and resilient global energy supply as a leader in the world’s energy transition,” added Mario Azar, Black & Veatch Chairman & Chief Executive Officer.

Cedar LNG is a proposed floating LNG facility in Kitimat, British Columbia in Canada, within the traditional territory of the Haisla Nation.

The project now has major regulatory approvals, signed memorandums of understanding for long-term liquefaction services for the project’s total LNG capacity, and with the achievement of this milestone, the project is at an advanced stage of planning and development with a FID expected by the end of the first quarter 2024.

Subject to a positive FID, onshore construction work for the project could start as early as the second quarter 2024, with the delivery of the FLNG and substantial completion expected in 2028.

The project is strategically positioned to leverage Canada’s abundant natural gas supply and British Columbia’s growing LNG infrastructure to produce low-carbon LNG for overseas markets.

Natural gas will be delivered to Cedar LNG through an approximately 8-kilometer-long pipeline that connects to the Coastal GasLink pipeline.

The natural gas will then be converted to LNG, before being loaded onto an LNG carrier, about once every 7 to 10 days or up to 50 times a year. Each LNG carrier will travel through Douglas Channel to Hecate Straight, using the existing deep-water shipping lane, on its way to customers in the Asia Pacific.

Up to 500 people will be working at Cedar LNG during the peak of construction. Approximately 100 people will be working at the facility full-time during operation.

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