Samsung Engineering Aims High in LNG Market

According to the announcement, Samsung Engineering will also become minority equity interest holder in the Texas LNG project.

The announcement was confirmed by the spokesman at the Seoul-based company today Edward Kang, who said that under the agreement, the Samsung Group company will also build the facility to be completed in 2019, Bloomberg writes.

This project marks Samsung Engineering’s first entry into the LNG market as the lead FEED engineer. The FEED contract is expected to be converted into an engineering, procurement, construction and project management (EPC&PM) contract after performing an EPC cost estimation.

Although the EPC contract value has yet to be agreed, other existing LNG liquefaction terminals of similar size are valued over USD 1 billion.

In June of this year, Texas LNG and Samsung Engineering announced an alliance to develop the innovative LNG export terminal project in Brownsville, Texas, USA. Samsung Engineering has completed the Concept Design study and will complete the Pre-FEED works in the next few weeks.

The alliance will provide all engineering and technical design studies to support the Federal Energy Regulatory Commission (FERC) permit application process expected to begin in late 2014.

AMEC Samsung Oil and Gas (ASOG), a joint venture between Samsung Engineering, Samsung Heavy Industries, and AMEC in Houston, with support from HQ office in Seoul, Korea, is also expected to participate in the FEED process.

Samsung Engineering supports Texas LNG’s concept to construct the liquefaction unit on a barge/skid-mounts in a controlled shipyard environment.

Texas LNG said that its pre-fabricated liquefaction solution would minimize complex onshore civil construction works and project costs,reduce the overall local environmental impact, and expedite speed to market.

Samsung Engineering’s President & CEO Mr. Choong Heum Park commented: “ We strongly believe that the recent merger with Samsung Heavy Industries will strengthen the capability for delivering the full FEED and EPC services for this project. Successful completion will create the stepping stone for us to become the major player in the LNG market.”

The merger is expected to complete by December, enabling the combined company to curb potential cost overruns.

Execution of the definitive agreement detailing terms of the FEED contract is pending final board approval.

Press Release