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Team Korea Wins KRW 4 Trillion Order for US Louisiana FLNG
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Date
2026.06.16.
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198
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Team Korea Wins KRW 4 Trillion Order for US Louisiana FLNG
□ The Ministry of Land, Infrastructure, and Transport (MOLIT; Minister Kim Yun-duk), Ministry of Climate and Energy Environment (MCEE; Minister Kim Sunghwan), and Ministry of Oceans and Fisheries (MOF; Minister Hwang Jong-woo) announced on June 1 (Monday, US local time) that Team Korea—a collaborative effort involving businesses, government, and public institutions—has successfully won a contract for the US Louisiana FLNG (Floating Liquefied Natural Gas) Offshore Plant Unit 1 Construction Project valued at approximately USD 2.8 billion (about KRW 4 trillion).
* Floating Liquefied Natural Gas: A floating offshore plant equipped with natural gas liquefaction facilities, constructed at a domestic shipyard and installed on-site to perform the liquefaction, storage, and unloading of natural gas produced from gas fields
o In this project, the Korea Overseas Infrastructure and Urban Development Corporation (KIND), the Green Fund, and the Korea Ocean Business Corporation have invested in a fund led by BlackRock (the world's largest global asset manager), which is driving the project. They have helped Korean companies* secure the EPC contract by participating as financial investors and supporting financial structuring.
* Samsung Heavy Industries has won 6 out of the 10 FLNG orders placed worldwide (3 in operation, 3 under construction). With this additional contract, they are expected to solidify their leadership in the FLNG market.
o This project will apply Korean companies' eco-friendly design technologies including selective catalytic reduction—which reduces nitrogen oxides discharge in exhaust gas after fuel combustion by converting them into nitrogen and water through a catalyst—and a heat recovery steam generator that maximizes energy reuse by recovering waste heat to produce steam and electricity.
<Project Overview>
o (Project details) Annual LNG production of approximately 4.4 million tons in waters about 74 km off the coast of Louisiana, USA
o (Total project cost) USD 4.8 billion (approx. KRW 7 trillion)
* Samsung Heavy Industries EPC KRW 2.8 billion (approx. KRW 4 trillion)
o (Project period) 5 years for construction, 25 years for operation
o (Investment) USD 70 million (approx. KRW 100 billion) by KIND, USD 30 million (approx. KRW 45 billion) by Green Fund, and USD 50 million (approx. KRW 75 billion) by Korea Ocean Business Corporation
□ This project is significant since it enabled Korean companies to secure a major infrastructure project through organic collaboration with three ministries and two public institutions, not to mention having broadened the foundation for them to enter the US energy infrastructure market in the future.
o As this project is an investment development project covering the entire process of financing, construction, and operation, it is expected to serve as a decisive turning point for overseas construction to transition from a traditional order-taking industry to a high value-added, complex industry.
o Furthermore, since the FLNG will be manufactured, fabricated, and assembled in Korea, it is also seen to contribute to revitalizing local economies through consecutive contract wins by small and medium-sized enterprises.
□ This case is set to prove that participation in major overseas infrastructure projects will strengthen not only construction project orders but also supply chain stability.
o Accordingly, amid growing supply chain uncertainties caused by the blockade of the Strait of Hormuz, the government plans to pursue the diversification of import sources and the reinforcement of transportation networks actively by acquiring overseas infrastructure.
□ "Government ministries and public institutions will stand as partners for Korean companies seeking to enter overseas markets based on their technological capabilities, and will work together as one team. Building on the partnership with global developers established through this negotiation, we expect to identify future collaborative projects actively," the government said.
o It also vowed to provide unwavering policy support to ensure that the overseas construction industry transforms into a high value-added industry that provides quality jobs. “In particular, we will expand infrastructure investments in overseas energy and port projects to strengthen our capacity to respond to global supply chain issues,” the government added.
- Securing the large US project through organic cooperation among companies, government, and public institutions
- Best practice for winning a public-private partnership (PPP) contract... A catalyst for entering the US energy infrastructure market
- Best practice for winning a public-private partnership (PPP) contract... A catalyst for entering the US energy infrastructure market
□ The Ministry of Land, Infrastructure, and Transport (MOLIT; Minister Kim Yun-duk), Ministry of Climate and Energy Environment (MCEE; Minister Kim Sunghwan), and Ministry of Oceans and Fisheries (MOF; Minister Hwang Jong-woo) announced on June 1 (Monday, US local time) that Team Korea—a collaborative effort involving businesses, government, and public institutions—has successfully won a contract for the US Louisiana FLNG (Floating Liquefied Natural Gas) Offshore Plant Unit 1 Construction Project valued at approximately USD 2.8 billion (about KRW 4 trillion).
* Floating Liquefied Natural Gas: A floating offshore plant equipped with natural gas liquefaction facilities, constructed at a domestic shipyard and installed on-site to perform the liquefaction, storage, and unloading of natural gas produced from gas fields
o In this project, the Korea Overseas Infrastructure and Urban Development Corporation (KIND), the Green Fund, and the Korea Ocean Business Corporation have invested in a fund led by BlackRock (the world's largest global asset manager), which is driving the project. They have helped Korean companies* secure the EPC contract by participating as financial investors and supporting financial structuring.
* Samsung Heavy Industries has won 6 out of the 10 FLNG orders placed worldwide (3 in operation, 3 under construction). With this additional contract, they are expected to solidify their leadership in the FLNG market.
o This project will apply Korean companies' eco-friendly design technologies including selective catalytic reduction—which reduces nitrogen oxides discharge in exhaust gas after fuel combustion by converting them into nitrogen and water through a catalyst—and a heat recovery steam generator that maximizes energy reuse by recovering waste heat to produce steam and electricity.
<Project Overview>
o (Project details) Annual LNG production of approximately 4.4 million tons in waters about 74 km off the coast of Louisiana, USA
o (Total project cost) USD 4.8 billion (approx. KRW 7 trillion)
* Samsung Heavy Industries EPC KRW 2.8 billion (approx. KRW 4 trillion)
o (Project period) 5 years for construction, 25 years for operation
o (Investment) USD 70 million (approx. KRW 100 billion) by KIND, USD 30 million (approx. KRW 45 billion) by Green Fund, and USD 50 million (approx. KRW 75 billion) by Korea Ocean Business Corporation
□ This project is significant since it enabled Korean companies to secure a major infrastructure project through organic collaboration with three ministries and two public institutions, not to mention having broadened the foundation for them to enter the US energy infrastructure market in the future.
o As this project is an investment development project covering the entire process of financing, construction, and operation, it is expected to serve as a decisive turning point for overseas construction to transition from a traditional order-taking industry to a high value-added, complex industry.
o Furthermore, since the FLNG will be manufactured, fabricated, and assembled in Korea, it is also seen to contribute to revitalizing local economies through consecutive contract wins by small and medium-sized enterprises.
□ This case is set to prove that participation in major overseas infrastructure projects will strengthen not only construction project orders but also supply chain stability.
o Accordingly, amid growing supply chain uncertainties caused by the blockade of the Strait of Hormuz, the government plans to pursue the diversification of import sources and the reinforcement of transportation networks actively by acquiring overseas infrastructure.
□ "Government ministries and public institutions will stand as partners for Korean companies seeking to enter overseas markets based on their technological capabilities, and will work together as one team. Building on the partnership with global developers established through this negotiation, we expect to identify future collaborative projects actively," the government said.
o It also vowed to provide unwavering policy support to ensure that the overseas construction industry transforms into a high value-added industry that provides quality jobs. “In particular, we will expand infrastructure investments in overseas energy and port projects to strengthen our capacity to respond to global supply chain issues,” the government added.
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