Team Korea Secures 4 Trillion Won Project in U.S. with Public-Private Partnership... "Lays Foundation for Entry into Local Energy Infrastructure"

Samsung Heavy Wins U.S. FLNG Contract; Korea Invests $150 Million
"Significance as an Investment-Development Project... Supply Chain Diversification Expected"

A Korean company has secured its first order for a floating liquefied natural gas (FLNG) production facility in the United States. This 4 trillion won project came to fruition thanks to the support of the Korean government and public institutions, which participated as investors to assist Korean companies in winning infrastructure projects in the U.S.

According to the Ministry of Land, Infrastructure and Transport, the Ministry of Climate, Energy and Environment, and the Ministry of Oceans and Fisheries, the contract for the construction of the first FLNG offshore plant in Louisiana, United States, valued at 2.8 billion dollars, was awarded on June 1 (local time). An FLNG is a floating offshore plant equipped with liquefied natural gas production facilities. The system is built at domestic shipyards and then installed on site, where it liquefies, stores, and offloads natural gas produced from gas fields. The plan is to build the facility over five years and operate it for the following 25 years.

This project is spearheaded by a fund managed by BlackRock, the world’s largest asset management company. Korea Overseas Infrastructure & Urban Development Corporation (KIND), the Green Fund, and Korea Ocean Business Corporation participated as financial investors in this fund. The combined investment from these three entities amounts to 150 million dollars (approximately 220 billion won). A special purpose company (SPC), formed by the BlackRock fund and overseas investors, has obtained FLNG business and LNG export permits from the U.S. government; this SPC will sign an engineering, procurement, and construction (EPC) contract for the FLNG with Samsung Heavy Industries.

Large floating liquefied natural gas production facility built by Samsung Heavy Industries. Provided by Samsung Heavy Industries

According to the Ministry of Land, Infrastructure and Transport, this project will apply Korean companies’ eco-friendly engineering technologies, including selective catalytic reduction, which reduces nitrogen oxides in exhaust gases from fuel combustion by converting them into nitrogen and water via catalysts, and heat recovery steam generators, which maximize energy reuse by recovering waste heat to generate steam and electricity.

The government noted that the project is significant not only because of the successful collaboration among Korean companies, ministries, and public institutions to secure a major infrastructure contract, but also because it expands the foundation for Korean entry into the U.S. energy infrastructure market. Unlike traditional procurement models, this is an investment-development project that covers the entire process from financing and construction to operation. Since the facility will be manufactured, built, and assembled domestically, it is also expected to benefit Korean small and medium-sized enterprises.

The government believes this case demonstrates that participation in overseas infrastructure projects can contribute not only to securing construction contracts but also to strengthening supply chain stability. With supply chain uncertainty growing due to the blockade of the Strait of Hormuz, the government plans to actively pursue strategies to diversify import sources and reinforce transport networks by securing local infrastructure. The government said, "We hope to proactively identify future collaborative projects based on the partnerships established with global developers through this negotiation."

U.S. Louisiana FLNG Offshore Plant Project Business Structure Diagram. Provided by the Ministry of Land, Infrastructure and Transport

This content was produced with the assistance of AI translation services.