# Samsung Heavy wins ABS approval for proprietary FLNG systems *The South Korean shipbuilder cleared a basic design review for its SENSE liquefaction cycle, cutting reliance on Western engineering licensors for offshore vessels.* **Published:** October 10, 2026 **By:** Hyun-jung Lee **Section:** Shipbuilding & Defense — South Korea **Format:** Company Watch **Confidence:** medium **Source:** https://eastasiabrief.com/shipbuilding/samsung-heavy-wins-abs-approval-proprietary-flng-systems-642 **Publisher:** East Asia Brief (https://eastasiabrief.com/) --- ## What to know - SENSE unit produces over 2 million tons of LNG yearly while cutting power draw by up to 14% - Samsung Heavy Industries eliminates reliance on foreign licensors for topside FLNG engineering - Commercial bidding and FEED tenders for SENSE enter tender review in June 2027 ![Workers monitor topside equipment and piping on a floating liquefied natural gas vessel as a crane hoists an industrial module. (AI-generated image)](https://eastasiabrief.com/media/2026-10-10-a404ed612d89.webp) *Workers monitor topside equipment and piping on a floating liquefied natural gas vessel as a crane hoists an industrial module. (AI-generated image)* Samsung Heavy Industries secured regulatory confirmation on Oct. 10, 2026, for its proprietary natural gas liquefaction system across the entire topside of a floating liquefied natural gas vessel. The SENSE liquefaction unit processes more than 2 million metric tons of natural gas per year. That output represents roughly 60% of the processing capacity required on a standard mid-scale offshore production vessel. Topsides process systems account for up to 60% of total capital expenditure on a typical $2.5 billion floating liquefied natural gas facility. Royalties paid to foreign process licensors have historically absorbed about 5% of those topside procurement costs. The American Bureau of Shipping issued an Approval in Principle and completed a Basic Design Review for the system. The verification confirmed that front-end engineering design packages developed by Samsung Heavy Industries meet international safety standards. South Korea builds most of the world's floating liquefied natural gas hulls, yet domestic yards have long depended on overseas licensors for liquefaction technology. The approval gives the shipbuilder an independent engineering package for offshore energy infrastructure. Samsung Heavy Industries developed the SENSE process to refrigerate offshore natural gas down to minus 162 degrees Celsius. The cryogenic cooling cycle condenses the natural gas to one six-hundredth of its gaseous volume for ocean storage. The system uses a mixed expansion cooling cycle that cuts electrical power consumption by up to 14% compared to conventional gas-expansion liquefaction systems. Lower power draw reduces the fuel gas burned by topside turbines during offshore processing. The technical milestone establishes an integrated engineering foundation for offshore contracts, said Joonho Min, vice president of the offshore engineering team at Samsung Heavy Industries. Independent liquefaction design enables the yard to execute turnkey engineering, procurement and construction orders. Developing proprietary liquefaction systems provides crucial flexibility for project developers, said Matt Tremblay, senior vice president of global markets at the American Bureau of Shipping. The classification society conducted technical evaluations against marine risk matrices and structural fatigue criteria. Samsung Heavy Industries has constructed three of the world's first four commercial floating liquefied natural gas vessels. Those deliveries include the 3.4-million-ton Coral Sul facility deployed off the coast of Mozambique. Ownership of topside process design allows the yard to compress engineering schedules by four to six months. Elimination of external licensing approvals removes engineering bottlenecks that frequently cause offshore construction delays. The classification society issued its formal review documentation following technical presentations held during the Gastech exhibition. The basic design review covered structural interfaces, cryogenic piping layouts and hydrocarbon safety barriers across every process module. Lloyd's Register also granted an Approval in Principle for the SENSE topside engineering package. Dual classification endorsements allow international oil majors to finance offshore production units through conventional project debt facilities. Samsung Heavy Industries signed a commercialization agreement with domestic gas engineering firm GasEntec to deploy the system across regional offshore developments. GasEntec will engineer modular process skids incorporating the SENSE refrigeration cycle. Topside engineering accounts for more than half of overall offshore project execution risks. Securing proprietary process rights allows the Geoje shipyard to preserve margins that previously leaked to foreign engineering consultants. Engineering licensors such as Air Products and Chemicals and Technip Energies have historically dominated offshore liquefaction intellectual property. Asian shipbuilders were restricted to steel fabrication and mechanical assembly under third-party engineering supervision. The SENSE design eliminates third-party licensing covenants that restricted equipment sourcing choices. Samsung Heavy Industries can now procure compressors, heat exchangers and cryogenic valves from certified domestic manufacturers. Supplying certified domestic components reduces equipment procurement expenses by an estimated 8% across topside piping networks. Localized equipment chains also shorten lead times for long-lead offshore mechanical packages. Project developers plan to evaluate the certified SENSE system for commercial offshore tenders scheduled for review in June 2027. Early engineering studies for upcoming Southeast Asian gas extraction fields will incorporate the validated basic design package. The classification documents do not disclose royalty arrangements or revenue sharing terms agreed with GasEntec. Furthermore, public regulatory filings do not record a separate class certificate registration on Oct. 10, 2026, beyond the Gastech technical approvals completed earlier in the month. ## Impact map | Event | Korea | China | Japan | Global impact | | --- | --- | --- | --- | --- | | Proprietary FLNG liquefaction certification | Samsung Heavy Industries retains topside EPC control, cutting subsea licensing fees | Hudong-Zhonghua remains dependent on Western engineering licenses for offshore liquefaction | Modec faces stronger Korean competition in modular offshore topside engineering bids | FLNG field operators reduce topside capital expenditure by an estimated 5% to 8% | ## In this story - **Companies:** Samsung Heavy Industries - **Tickers:** 010140.KS - **Exposed:** GasEntec, Technip Energies, Air Products and Chemicals - **Policy:** Economic Security - **Impact:** Capex, Supply Chain, Cost Structure ## Primary sources 1. eagle.org 2. news1.kr 3. theggnews.com 4. economytalk.kr 5. oceancrew.org --- Cite as: East Asia Brief, "Samsung Heavy wins ABS approval for proprietary FLNG systems," October 10, 2026. https://eastasiabrief.com/shipbuilding/samsung-heavy-wins-abs-approval-proprietary-flng-systems-642