Samsung Heavy backlog rises on FLNG demand
May 28 (Asia Today) -- Samsung Heavy Industries is expanding its offshore plant business on rising demand for floating liquefied natural gas production facilities.
The South Korean shipbuilder said its offshore production facility order backlog reached $4.3 billion in the first quarter, up 43% from $3 billion a year earlier.
Samsung Heavy is currently building three floating liquefied natural gas facilities, known as FLNG units, at its Geoje shipyard. The projects are for Malaysia's ZLNG, Canada's Cedar LNG and Mozambique's Coral project.
The company said the projects are proceeding on schedule.
Industry analysts say demand for FLNG facilities is increasing as countries seek cleaner energy sources and energy companies expand development of deepwater gas fields.
Market research firm Mordor Intelligence forecast the global FLNG market will grow from $28.2 billion this year to $44.72 billion in 2031. The firm projected an average annual growth rate of 9.66% from 2026 to 2031.
Samsung Heavy is regarded as a major player in the FLNG market. Unlike commercial vessels, FLNG facilities require customized designs for each project as well as advanced offshore plant manufacturing and project management capabilities.
The company increased offshore production volume to 7,800 tons in the first quarter, up more than 70% from 4,400 tons a year earlier.
The start of full-scale FLNG construction is expected to support revenue growth. Samsung Heavy has set this year's sales target at 12.8 trillion won, or about $8.5 billion, up 20% from a year earlier.
FLNG units are considered high-value offshore facilities, with each unit typically priced at $1.5 billion to $2.5 billion. That is about six to 10 times the price of a standard LNG carrier. As construction progresses, revenue recognition is expected to increase.
Analysts say additional FLNG orders this year will be an important factor in the company's medium- and long-term offshore plant growth.
"If Samsung Heavy wins the first Delfin FLNG unit in the first half and secures the second unit and Canada's Western FLNG project by the end of the year, it can fully achieve this year's offshore order target of $8.2 billion," Bae Sung-jo, an analyst at Hanwha Investment & Securities, said in a recent report.
-- Reported by Asia Today; translated by UPI
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This story was originally published May 28, 2026 at 4:50 PM.