Seoul: South Korea has secured a significant US$2.8 billion contract to develop an offshore liquefied natural gas (LNG) facility in the United States, as announced by the Seoul government on Thursday. This development marks a notable collaboration between the South Korean government, public institutions, and private companies to construct a floating LNG unit in Louisiana.

According to Yonhap News Agency, the Ministry of Land, Infrastructure and Transport revealed in a joint release that Samsung Heavy Industries Co. will serve as the main contractor for the project. However, the name of the client remains undisclosed. The floating LNG facility, an offshore platform used for LNG production and related operations, is a critical component of a larger U.S. project. This broader initiative, with a total value of $4.8 billion, aims to produce 4.4 million tons of LNG annually in the waters off Louisiana over a five-year construction period, followed by 25 years of operations.

The Korea Overseas Infrastructure and Urban Development Corp., the Green Fund, and the Korea Ocean Business Corp. have collectively invested $150 million in a fund led by BlackRock. This investment supports Samsung Heavy Industries' bid for the engineering, procurement, and construction (EPC) deal. Samsung Heavy plans to commence construction upon receiving a notice to proceed from the client, with the facility's completion anticipated by July 2030.

The South Korean government emphasized its commitment to providing policy support aimed at transforming the overseas construction industry into a high-value-added sector that generates quality employment opportunities. Additionally, the government intends to increase investments in overseas energy, port, and other infrastructure projects to bolster its capacity to navigate global supply chain challenges.