South Korean shipbuilder Samsung Heavy Industries (SHI) has terminated a contract worth a 907.6 billion won ($776.8 million) for the construction of a liquefied natural gas (LNG) floating production and storage (FPSO) unit the shipbuilder signed with an unnamed European buyer back in January 2009.
The South Korean shipbuilder said in a regulatory filing that the order, which came from an unspecified European firm, was cancelled as the firm did not issue a work order by a deadline agreed upon.
Under the initial contract signed in January 2009, the floating production, storage and offloading (FPSO) unit was planned to have an annual production capacity of 2.5 million tons and a storage capacity of 210,000-cbm of LNG.
The LNG-FPSO was initially expected to produce LNG from 2013 onwards. SHI subsequently agreed to postpone the delivery of the FPSO to December 2015.