# Hanwha Ocean mounts first FLNG bid in decade against Samsung Heavy *Samsung Heavy holds seven of 11 global contracts valued at up to $3.5 billion each, controlling slots while Hanwha Ocean revives its offshore campaign.* **Published:** November 14, 2026 **By:** Hyun-jung Lee **Section:** Shipbuilding & Defense — South Korea **Format:** Why It Matters **Confidence:** medium **Source:** https://eastasiabrief.com/shipbuilding/hanwha-ocean-mounts-first-flng-bid-decade-against-samsung-1413 **Publisher:** East Asia Brief (https://eastasiabrief.com/) --- ## What to know - Hanwha Ocean challenges Samsung Heavy's 64% global market share in FLNG - Delfin FLNG hull booked at 4.33 trillion won sets slot baseline through July 2030 - Government launches 74.5 billion won equipment localization program in 2027 ![A large vessel undergoes construction in a shipyard drydock while a liquefied natural gas carrier floats nearby in the harbor. (AI-generated image)](https://eastasiabrief.com/media/2026-11-14-64528b1ff34c.webp) *A large vessel undergoes construction in a shipyard drydock while a liquefied natural gas carrier floats nearby in the harbor. (AI-generated image)* Hanwha Ocean stepped up its commercial return to floating liquefied natural gas construction on Nov. 13, 2026, mounting its first bid in a decade against Samsung Heavy Industries' near-monopoly on offshore production vessels. The global floating liquefied natural gas (FLNG) market represents one of shipbuilding's highest-margin segments. Each hull commands contract values between $2.5 billion and $3.5 billion, absorbing extensive drydock capacity and skilled engineering labor. Samsung Heavy Industries holds seven of the 11 newbuild FLNG contracts awarded worldwide, giving the Geoje-based builder a 64% global market share. Its dominant slot position has allowed it to set delivery schedules and price terms for global developers. Hanwha Ocean built the world's first operational FLNG, delivering the 1.2-million-ton-per-year PFLNG SATU to Malaysia's Petronas in 2016. The company then exited the segment for 10 years during prolonged debt restructuring under its previous corporate identity, Daewoo Shipbuilding & Marine Engineering. The company laid the regulatory groundwork for its comeback on Sept. 17, 2026, securing Approval in Principle for a standardized FLNG design from the American Bureau of Shipping and DNV at the Gastech 2026 conference in Bangkok. Philippe Levy, president of Hanwha Ocean's Energy Plant Unit, accepted the design approval. The standardized platform adapts pre-engineered modules from the company's floating production, storage and offloading (FPSO) hulls to reduce front-end engineering lead times. During an earnings call on Oct. 27, 2026, Hanwha Ocean told investors that surging AI data center power demand is accelerating upstream gas investment. The shipbuilder confirmed it is targeting FLNG units and floating power plants to diversify earnings. The re-entry directly challenges Samsung Heavy's commercial pricing leverage over premium construction slots. Samsung Heavy currently has three mega-FLNG hulls under simultaneous construction at its Geoje yard: the Coral Norte FLNG for Italy's Eni, the ZLNG for Petronas and the Cedar FLNG for Canada. On June 2, 2026, Samsung Heavy booked a 4.3301 trillion won ($3.13 billion) contract to construct the first FLNG vessel for the Delfin LNG project off Louisiana. That contract carries a scheduled delivery date of July 2030. Samsung Heavy is also in commercial talks for Delfin's second and third units, as well as the Western LNG floater in British Columbia. Securing three consecutive hulls would lock up its offshore fabrication capacity well past 2031. Offshore margins have powered Samsung Heavy's earnings turnaround. The shipbuilder reported a second-quarter operating profit of 325 billion won ($235 million), up 58.7% from a year earlier, lifting first-half operating profit to 598.1 billion won. Hanwha Ocean's bid to break Samsung Heavy's market grip is backed by South Korea's industrial policy. On Sept. 17, 2026, the Ministry of Trade, Industry and Energy designated Hanwha Ocean's Okpo shipyard in Geoje as an offshore equipment cluster anchor. The ministry approved a 74.5 billion won ($54 million) development program running from 2027 through 2031. The funding combines 41.5 billion won from the central government, 15 billion won from local authorities and 18 billion won from Hanwha Ocean. The state program targets the indigenization of core natural gas liquefaction technology. South Korean yards currently pay foreign licensors roughly 90 billion won ($65 million) per vessel, or 2% to 3% of total hull construction value, in licensing fees. Foreign engineering licensors also dictate which subcontractors supply critical liquefaction machinery, limiting domestic procurement. The Geoje cluster program aims to raise domestic supply content for FLNG materials and equipment from 30% to 60% by 2031. Hanwha Ocean has committed a separate 1.522 trillion won ($1.1 billion) capital expenditure plan through 2031. The investment will upgrade heavy offshore construction infrastructure and install automated fabrication lines across its Okpo dock facilities. The emergence of a second South Korean builder provides project developers with alternative berth options. With Samsung Heavy's dock space committed through 2030, energy majors had faced multi-year waiting times or cost premiums for offshore gas processing tonnage. South Korea's third major shipbuilder, HD Hyundai Heavy Industries, has focused its offshore operations on fixed production platforms and floating production units rather than full liquefaction vessels. That strategic division left Samsung Heavy without a domestic challenger in floating LNG. Hanwha Ocean did not publish a regulatory filing or official statement on Nov. 13 confirming specific contract targets, and the company has not disclosed the commercial pricing or shipyard slot reservation timeline for its first standardized FLNG hull. Project developers and engineering contractors will test Hanwha Ocean's pricing against Samsung Heavy when bidding concludes for Delfin's second production unit in early 2027. ## Impact map | Event | Korea | China | Japan | Global impact | | --- | --- | --- | --- | --- | | Offshore FLNG slot contest | Hanwha Ocean invests 1.52 trillion won to rival Samsung Heavy's 64% FLNG share | Wison New Energies faces Korean pricing pressure on mid-scale floaters | Mitsui O.S.K. Lines evaluates dual-yard Korean tender options for offshore LNG | Offshore LNG developers gain second construction channel for post-2030 berths | ## In this story - **Companies:** Hanwha Ocean, Samsung Heavy Industries - **Tickers:** 042660.KS, 010140.KS - **Exposed:** Eni - **Policy:** Subsidies - **Impact:** Capex, Pricing, Order Book ## Primary sources 1. irgo.co.kr 2. pinpointnews.co.kr 3. dailian.co.kr 4. hanwhaocean.com 5. gjn.kr --- Cite as: East Asia Brief, "Hanwha Ocean mounts first FLNG bid in decade against Samsung Heavy," November 14, 2026. https://eastasiabrief.com/shipbuilding/hanwha-ocean-mounts-first-flng-bid-decade-against-samsung-1413