South Korea’s Samsung Heavy Industries, the world’s fifth-largest shipbuilder according to Lloyd’s List, has secured a $637 million contract to build a cutting-edge floating liquefied natural gas (FLNG) facility off the coast of Mozambique.
The deal, signed with a European client operating in the region, will enable the construction of a modern offshore platform designed to extract, liquefy, and store natural gas at sea, eliminating the need for expensive onshore infrastructure.
According to South Korea’s Yonhap News Agency, the agreement was initially signed with a European shipping company involved in African operations, and the final version of the contract will be formalized later.
A spokesperson for Samsung Heavy said, “Countries have shown increased interest in energy security following the Russia-Ukraine war, and investments in offshore energy production facilities are expected to grow amid U.S. President Donald Trump’s shifting energy policies.”
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This project marks Samsung’s second major LNG collaboration in Mozambique.
Its first venture, the Coral Sul FLNG platform developed in partnership with Eni and China National Petroleum Corporation (CNPC), launched in 2022 and was the world’s first ultra-deepwater floating LNG plant.
That milestone positioned Mozambique as a new and promising player in the global LNG market.
Mozambique is estimated to hold around 100 trillion cubic feet of natural gas, making it one of the most gas-rich countries in Africa.
The International Energy Agency estimates that the continent will need about $200 billion annually by 2030 to achieve universal access to modern energy, and Mozambique’s vast reserves make it central to that goal.
Construction of the new FLNG platform is expected to begin later in 2025, with completion and delivery set for 2027.
The new facility will significantly increase Mozambique’s LNG production and export capacity, supporting the country’s broader ambitions of becoming a major global supplier.
Other energy companies, including TotalEnergies, are also showing renewed interest in the region, with plans to restart Mozambique’s $20 billion LNG megaproject and begin production by 2029.
Samsung Heavy Industries, which has already secured $3.3 billion in orders so far this year, 34% of its $9.8 billion annual target, says this latest contract reflects growing confidence in its offshore engineering capabilities.
The company’s current order backlog stands at $26.5 billion, enough to sustain operations for the next three years.
Despite ongoing regional security concerns and logistical difficulties, Mozambique continues to attract strong international interest in its LNG sector.
The addition of this new FLNG platform is expected to further solidify the country’s role in global gas supply, especially as markets seek to diversify amid continued geopolitical uncertainty.
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Image Credit: Business Insider Africa
