Samsung Heavy Industries Co., a major South Korean shipbuilder, has developed an independent liquefaction technology for floating liquefied natural gas (FLNG) facilities, aiming to challenge the long-standing dominance of US and European companies in the sector.
The technology, known as SENSE IV, plays a critical role in the FLNG process, enabling offshore structures to extract, liquefy, and transfer natural gas from subsea fields.
FLNG construction typically costs between 2 trillion won and 4 trillion won ($1.5 billion-$3 billion) per unit, with liquefaction equipment comprising up to 35% of the total cost.
Despite South Korea’s leadership in shipbuilding, key liquefaction components have historically been sourced from foreign companies, including Honeywell International Inc., a US-based engineering firm in North Carolina.
Samsung Heavy aims to reduce reliance on imported technology and strengthen Korea’s position in the shipbuilding industry.
According to industry sources on Wednesday, Samsung is in negotiations to supply an FLNG unit equipped with SENSE IV to an Italian energy company.
Previously, Samsung-built FLNGs relied on imported liquefaction systems under licenses from Honeywell. However, future orders from the Italian firm are expected to incorporate Samsung’s proprietary liquefaction technology.
Currently, up to 70% of the lower hull structures on FLNGs are produced domestically in Korea, but only 30–40% of the topside, which includes the high-value liquefaction equipment, has been localized. This dependence on foreign technology has increased licensing costs and limited domestic manufacturers' control over after-sales services.
Samsung Heavy's SENSE IV aims to shift this balance by expanding Korea’s capabilities in high-value FLNG components.
Samsung Heavy Industries Co., Ltd. is a South Korean shipbuilding and offshore engineering company, part of Samsung Group. It specializes in shipbuilding, offshore platforms, and engineering solutions.
Honeywell International Inc. is a US-based multinational engineering and manufacturing company headquartered in Charlotte, North Carolina. It provides advanced liquefaction technology for the LNG and FLNG industries.