A Ship Worth 2.3 Billion Yuan: Shipbuilding Giant Secures This Year’s First Major Offshore Engineering Contract

On May 4, South Korea’s Samsung Heavy Industries announced that it has signed a construction contract with a shipowner in Asia for one LNG-FSRU (floating liquefied natural gas storage and regasification unit), with a contract value of KRW 484.8 billion (approximately USD 330 million or RMB 2.233 billion). The vessel is scheduled for delivery by February 15, 2029.

An FSRU is a state-of-the-art offshore marine facility that can store LNG at sea and regasify it into gaseous natural gas, often referred to as an “offshore LNG receiving terminal.” Compared with onshore terminals, FSRUs have shorter construction timelines, enabling rapid deployment of energy infrastructure. They are primarily deployed in regions where energy demand is growing rapidly or where the development of onshore receiving terminals is challenging. In particular, in recent years, driven by the rising electricity demand associated with the growth of the artificial intelligence (AI) industry, FSRUs have garnered increased attention as a critical component of energy infrastructure.

Samsung Heavy Industries holds a global leading position in the FSRU market, with end-to-end capabilities spanning design, construction, and system integration. The company has built at least 10 FSRUs for internationally renowned operators such as Norway’s Höegh LNG, including the “Höegh Galleon,” which boasts a storage capacity of 170,000 cubic meters and a regasification capacity of 750 million standard cubic feet per day, and was delivered in 2019.

Samsung Heavy Industries has also built a 170,000-cubic-meter FSRU equipped with the S-Regas (GI) system for a power-generation project on western Java in Indonesia, with a contract value of approximately USD 221 million. The company’s independently developed S-Regas regasification system—including the S-Regas (GI) glycol-blending system—significantly enhances energy efficiency and safety, reduces corrosion risks, and achieves energy savings of about 5%, thereby strengthening its competitiveness in the global FSRU market.

In addition, Samsung Heavy Industries offers integrated solutions spanning the entire LNG value chain, including FLNG (floating liquefied natural gas production units), LNG carriers, and FSRUs, thereby reinforcing its pivotal role in global clean-energy infrastructure.

A representative from Samsung Heavy Industries stated: “Against the backdrop of growing demand for energy infrastructure, FSRUs are poised to emerge as the most viable solution. Leveraging our comprehensive competitive edge across the entire LNG value chain, the company will continue to lead the global FSRU market.”

In particular, since the outbreak of the U.S.–Israel–Iran war in late February 2026, the global LNG market has suffered a severe shock, with significant repercussions for the LNG-FSRU sector as well. Affected by disruptions to Middle Eastern supplies, LNG-importing regions such as Asia and Europe have urgently stepped up efforts to lease or build new FSRUs to expand receiving capacity. As a flexible LNG-receiving infrastructure, the FSRU has emerged as a critical tool for bridging the gap left by pipeline gas shortages, driving a marked surge in leasing demand.

The U.S.–Israel–Iran conflict has significantly elevated the strategic importance of LNG-FSRUs within the global energy security framework by disrupting core supply routes, destroying critical production capacity, and reshaping trade flows. The International Energy Agency (IEA) notes that damage to LNG facilities will delay the expansion of global LNG capacity by at least two years, thereby indirectly enhancing the strategic value of existing FSRU assets. As some countries accelerate FSRU projects to bolster energy security, newbuild orders are likely to increase.

Including the latest FSRU order, Samsung Heavy Industries has secured a total of 17 new shipbuilding contracts worth US$3.43 billion (approximately RMB 23.4 billion) so far this year, representing about 24.6% of its full-year order target of US$13.9 billion. These 17 new orders comprise six large LNG carriers, two very large gas carriers (VLGCs), two very large ethane carriers (VLECs), two container ships, four crude oil tankers, and one FSRU.