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    Shell Cancels FLNG Order with Samsung Heavy Industries

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Summary

Samsung Heavy Industries has received a request from Shell for cancellation of a $4.6 billion order to build three floating LNG units for the Browse FLNG project in Australia, the South Korean firm said in a stick exchange filing Thursday.

by: Shardul

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Asia/Oceania

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Shell Cancels FLNG Order with Samsung Heavy Industries

Samsung Heavy Industries has received a request from Shell for cancellation of a $4.6 billion order to build three floating LNG units for the Browse FLNG project in Australia, the South Korean firm said in a stick exchange filing Thursday.

The three floating units, each having a capacity of 3.6 mt/year, were to be based on Shell FLNG technology. The decision was not unanticipated given the recent decision to scrap the Browse project.

In March, Woodside said Browse FLNG project has been shelved. Woodside said that following completion of front-end engineering and design (FEED) work, the Browse joint venture participants have decided not to progress with the development at this time considering the current economic and market environment.

Woodside’s participating interest in the Browse resources is 30.6 percent. Other joint venture partners are Shell Australia Pty Ltd, BP Developments Australia Pty Ltd, Japan Australia LNG (MIMI Browse) Pty Ltd and PetroChina International Investment (Australia) Pty Ltd.

The Browse resources are located in the Browse Basin, located offshore approximately 425 km north of Broome in Western Australia.

 

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