SHI cancels LNG FPSO order

South Korean shipbuilder, Samsung Heavy Industries cancelled a contract to build a substructure for a floating LNG producing unit for an unnamed European customer.

According to the company’s filing issued on Friday to the South Korea’s financial supervisory service, the order was valued at 907.6 billion won (Approx: US$773.8 million).

The shipbuilder noted that the order was cancelled because the client did not issue a notice to proceed.

Under the initial contract signed in January 2009, the floating production, storage and offloading (FPSO) unit was planned to have an annual production capacity of 2.5 million tons and a storage capacity of 210,000-cbm of LNG.

1 KRW = 0.000852544 USD

LNG World News Staff