Wednesday July 29, 05:55 AM
UPDATE 1-S.Korea Samsung Heavy wins Shell LNG facility deal
SEOUL, July 29 (Reuters) - South Korea's Samsung Heavy said on Wednesday that it had signed a contract to build floating liquefied natural gas (LNG) storage facilities for Royal Dutch Shell (Amsterdam: RDSA.AS
- news) for the next five years, renewable for up to 15 years.
A Samsung Heavy spokesman separately told Reuters the market estimated the contract would include 10 orders worth roughly $50 billion, although the exact value had yet to be determined.
Separately an official at Samsung Heavy, the world's third-largest shipbuilder, said on Tuesday that the offshore site for Shell (LSE: RDSB.L - news) 's LNG floating production storage and offloading (FPSO) could be in Australia or Southeast Asia.
Shell is planning a 3.5 million tonnes per year facility to develop its Prelude field off western Australia's Browse Basin, which has 2.5-3 trillion cubic feet of gas and about 120 million barrels of condensate.
Shares of Samsung Heavy gained 5.06 percent to 32,200 won as of 0429 GMT, outperforming a 0.41 percent fall in the broader market.
(Reporting by Cho Meeyoung and Jungyoun Park; Editing by Jonathan Hopfner)
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