KIND Makes First Entry into U.S. FLNG Project... Domestic Companies Anticipate $2.9 Billion in Orders

The Korea Overseas Infrastructure & Urban Development Corporation (KIND) announced on the 10th that it has decided to make a final investment in the Floating Liquefied Natural Gas (FLNG) development project underway in the Gulf of Mexico off the coast of Louisiana, United States, as of the 5th. With this decision, KIND is making its first foray into the offshore plant sector.
FLNG refers to facilities that can liquefy, store, and ship extracted natural gas directly at sea. Compared to onshore LNG terminals, FLNG facilities have a lower environmental impact and are not limited by land constraints. The ability to liquefy and ship gas near the production site enhances supply efficiency and economic viability. As the global energy transition accelerates, interest in this next-generation LNG supply method is growing among international companies.
This project involves constructing FLNG facilities approximately 76 kilometers off the coast of Louisiana, with an annual production and sales capacity of 4.4 million tons of LNG. The sales structure is designed based on long-term sales and purchase agreements (SPA), which ensures revenue stability.
KIND completed the project structure through joint investment with BlackRock funds and the Green Fund of the Ministry of Climate, Energy and Environment. The FLNG facilities will be built at domestic shipyards, and the expected order volume for Korean companies is approximately $2.9 billion (about 4.3 trillion won). This is expected to have a ripple effect throughout the industry, benefiting not only the shipbuilding sector but also small and medium-sized partner companies supplying equipment and components.
KIND also plans to support domestic companies in securing linked orders for the second and third FLNG units being promoted within the same project. The strategy is to expand the investment-development model, which packages investment, development, and operation, beyond simple construction-focused overseas expansion.
Kim Bok-hwan, President of KIND, stated, "This U.S. FLNG project marks our corporation’s first entry into the offshore plant sector and aligns with the government’s direction to expand investment in the United States. We will strengthen support to enable Korean companies to take a leading role in the global energy market and promote the spread of a Korean-style win-win model."
en1302@fnnews.com Jang In-seo Reporter