SHI Receives Shell's Termination Notice for $4.7B FLNG Building Contract
South Korea's Samsung Heavy Industries (SHI) received a notice from the Netherlands-based Shell Gas & Power B.V. terminating a contract to build three floating liquefied natural gas (FLNG) facilities for $4.64 billion (KRW 5.27 trillion), the company said Thursday in a company filing on the Korea Exchange.
SHI and the European supermajor inked the FLNG construction contract, which took effect June 30, 2015, with the South Korean shipbuilder expected to deliver the vessels by Nov. 30, 2023.
The South Korean company is currently building Shell's first FLNG facility for the Prelude gas field offshore Western Australia, which is tentatively scheduled to commence production later in the year.
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