South Korea’s Samsung Heavy Industries, the world’s fifth-largest shipbuilder according to Lloyd’s List, has secured a $637 million contract to construct a cutting-edge offshore liquefied natural gas (LNG) facility for a European client operating in Mozambique.
The agreement, which marks another significant milestone in Africa’s growing LNG sector, involves the construction of a floating LNG (FLNG) platform to tap into Mozambique’s vast offshore gas reserves.
The deal follows Samsung’s earlier success with the Coral Sul FLNG project—the first ultra-deepwater floating LNG plant, which launched Mozambique into LNG production in 2022.
According to South Korean news agency Yonhap, Samsung Heavy Industries initially signed a preliminary contract with a European shipping company with operations in Africa. A final agreement is expected to be formalized soon.
A company spokesperson noted that global energy dynamics—particularly following the Russia-Ukraine conflict—have spurred renewed interest in offshore energy production.
“Countries are prioritizing energy security, and investments in floating production facilities are gaining traction,” the spokesperson said.
The new project reflects Mozambique’s strategic importance in the global LNG supply chain and the increasing interest of Asian engineering and shipbuilding firms in Africa’s energy sector.
Mozambique is home to an estimated 100 trillion cubic feet of natural gas, placing it at the center of Africa’s energy future.
According to the International Energy Agency (IEA), the continent requires $200 billion annually by 2030 to achieve universal access to modern energy—making Mozambique’s reserves a key asset.
Samsung Heavy Industries’ new FLNG platform will enable the extraction, liquefaction, and storage of natural gas directly at sea.
This eliminates the need for costly onshore facilities and accelerates production timelines. The platform is scheduled for delivery in 2027, with construction expected to begin later this year.
The FLNG project also aligns with Mozambique’s national strategy to monetize its gas assets and become a major LNG exporter.
Global energy companies, including TotalEnergies, are also preparing to restart work on Mozambique’s $20 billion onshore LNG project, which is expected to begin production by 2029.
This contract adds to Samsung Heavy Industries’ impressive year, with $3.3 billion in new orders secured so far—representing 34% of its $9.8 billion annual target.
The company’s order backlog now stands at $26.5 billion, providing operational stability for the next three years.
Samsung stated that the deal demonstrates growing international confidence in its offshore engineering capabilities and reinforces its leadership in floating LNG solutions.
Despite challenges related to regional instability and logistics, Mozambique continues to attract significant international investment in LNG.
The upcoming floating platform is expected to significantly boost the country’s production capacity, diversify global supply routes, and enhance Mozambique’s export revenues.
As nations seek alternative energy sources and secure supply chains, this latest partnership between Samsung and Mozambique signals a strategic shift toward offshore LNG—and Africa’s increasingly critical role in the future of global energy.
