Eni S.p.A. to award USD2.5 billion Coral FLNG Project to Samsung Heavy Industries

South Korea: According to the shipping industry sources, Samsung Heavy Industries (SHI) got the green signal to build a floating LNG (FLNG) vessel abroad worth US$2.5 billion for Italian energy company ENI. For this project, the company along with France-based Technip and Japan-based JGC have formed a consortium to lead the project. The deal is expected to be finalized by the end of the year.

TechSci Research depicts that growing focus on expansion of gas pipeline infrastructure, rising demand for natural gas from downstream sectors, declining LNG prices coupled with implementation of favorable government policies is boosting demand for LNG across the globe. Increasing focus on development of adequate support infrastructure in various developing as well as developed economies is expected to boost LNG demand in the coming years.

According to a released report of TechSci Research, “Global LNG Market Demand & Supply Analysis, By Region, By Country, By LNG Terminal, Competition Forecast and Opportunities, 2011-2025”, global LNG supply market is forecast to exhibit a CAGR of over 5% during 2016-2025, on account of rising demand for cleaner fuels; oversupply of LNG due to liquefaction capacity additions in Australia, US and Papua New Guinea; and declining prices of LNG over the last few years. In 2015, global LNG export market was dominated by Qatar and Australia, due to huge natural gas reserves and large liquefication capacities in these countries. Increase in spot market purchase is expected to keep LNG prices under check in Asia-Pacific and Europe.