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Samsung Engineering wins FEED contract for Texas LNG

LNG Industry,

Samsung Engineering has been awarded the FEED contract for the 2 million tpa Texas LNG liquefaction project in Brownsville, Texas.

Samsung Engineering will also become minority equity interest holder in the Texas LNG project.

The award of this contract marks Samsung Engineering’s first entry into the LNG market as the lead FEED engineer. The FEED contract is expected to be converted into an engineering, procurement, construction and project management (EPC&PM) contract after performing an EPC cost estimation.

Although the EPC contract value has yet to be agreed, other existing LNG liquefaction terminals of similar size are valued over US$ 1 billion.

Texas LNG

In June 2014, Texas LNG and Samsung Engineering announced an alliance to develop the LNG export terminal project in Brownsville, Texas, USA. Samsung Engineering has completed the Concept Design study and will complete the Pre-FEED works in the next few weeks.

The alliance will provide all engineering and technical design studies to support the Federal Energy Regulatory Commission (FERC) permit application process expected to begin in late 2014. AMEC Samsung Oil and Gas (ASOG), a joint venture between Samsung Engineering, Samsung Heavy Industries and AMEC, is also expected to participate in the FEED process.

Samsung Engineering supports Texas LNG’s concept to construct the liquefaction unit on a barge/skid-mounts in a controlled shipyard environment. Texas LNG’s pre-fabricated liquefaction solution will minimise complex onshore civil construction works and project costs, reduce the overall local environmental impact, and expedite speed to market.


Commenting on the contract award, Samsung Engineering’s President and CEO Choong Heum Park said: “We have been putting utmost efforts to provide the best solution for Texas LNG project with our reliable team of LNG project engineers and experts. We strongly believe that the recent merger with Samsung Heavy Industries will strengthen the capability for delivering the full FEED and EPC services for this project. Successful completion will create the stepping stone for us to become the major player in the LNG market.”

Execution of the definitive agreement detailing terms of the FEED contract is pending final board approval.

Adapted from press release by Katie Woodward

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