South Korea’s Samsung Heavy Industries (SHI), the fifth-largest shipbuilder in the world, is making another bold move in Africa’s growing energy space.
The company has signed a $637 million contract to build a new floating liquefied natural gas (FLNG) facility off the coast of Mozambique, a deal that reinforces Africa’s rising importance in the global LNG market and deepens South Korea’s strategic involvement in offshore energy projects.
Why Mozambique?
Mozambique has quietly become one of the most important natural gas frontiers in Africa. With an estimated 100 trillion cubic feet of gas reserves, it holds some of the most promising offshore gas fields globally.
The southern African nation made headlines in 2022 when it launched Coral Sul FLNG, its first floating LNG facility, developed by Samsung in partnership with Italian energy giant Eni and China’s CNPC.
That success story set the stage for this latest deal. The new project is being commissioned by a European shipping company yet unnamed and will involve building another offshore facility that can produce, liquefy, and store gas directly at sea. This eliminates the need for costly onshore infrastructure and allows faster deployment and export to global markets.
What makes the deal so significant?
This contract isn’t just about one platform. It signals a broader shift: Africa is becoming a focal point for countries and companies looking to diversify their energy sources, especially as the world reels from the ongoing effects of the Russia-Ukraine war and increasing concerns over energy security.
Offshore LNG production offers a unique advantage flexibility. By liquefying gas at sea, countries like Mozambique can reduce land-based vulnerabilities while opening new export routes.
This agility is especially attractive in a world where geopolitical tensions can disrupt traditional supply chains overnight.
For Samsung Heavy Industries, this deal is further proof of its offshore engineering capabilities.
Already this year, SHI has secured over $3.3 billion in orders, inching closer to its $9.8 billion full-year target. Its current backlog, valued at $26.5 billion, gives the company enough workload to stay busy for at least the next three years.
Energy security and global politics
The timing of the deal is just as important as the deal itself. As global powers reconsider their energy strategies, investments in floating LNG infrastructure are surging.
According to a Samsung spokesperson, growing global instability including shifts in U.S. energy policy and ongoing war in Eastern Europe is prompting nations and companies to rethink their gas sourcing strategies.
Samsung’s contract reflects this trend. It allows the European client to tap into Mozambique’s offshore reserves, helping reduce reliance on more volatile regions and contributing to the diversification of global energy flows.
What’s next for Mozambique?
Beyond this deal, Mozambique is chasing even bigger dreams. The country’s $20 billion LNG megaproject, led by TotalEnergies, is still in the works and expected to resume soon after years of delays due to regional insecurity.
If all goes according to plan, production could begin by 2029. In the meantime, the new FLNG facility will help Mozambique scale its gas exports and increase foreign revenue.
For a country seeking to lift millions out of poverty and build modern infrastructure, LNG is more than just a resource, it’s a path to economic transformation.