KIND

□ The Ministry of Land, Infrastructure and Transport (Minister Kim Yun-deok), the Ministry of Climate, Energy and Environment (Minister Kim Sung-hwan), and the Ministry of Oceans and Fisheries (Minister Hwang Jong-woo) announced that “Team Korea,” a collaborative initiative involving private companies, government ministries, and public institutions, successfully secured the contract for the first Floating Liquefied Natural Gas (FLNG) facility project offshore Louisiana, United States, valued at USD 2.8 billion (approximately KRW 4 trillion), on June 1 (local time).

 * Floating Liquefied Natural Gas : a floating offshore facility equipped with LNG liquefaction systems. Constructed at domestic shipyards and installed offshore, FLNG facilities liquefy, store, and offload natural gas produced directly from offshore gas fields.

 ㅇ For this project, the Korea Overseas Infrastructure & Urban Development Corporation (KIND), the Green Fund, and the Korea Ocean Business Corporation (KOBC) invested in a fund led by BlackRock, the world’s largest asset management company. By participating as financial investors and supporting the project’s financing structure, they helped facilitate the EPC (Engineering, Procurement and Construction) contract awarded to a Korean company.

 * Samsung Heavy Industries has secured six of the ten FLNG projects ordered worldwide to date, with three currently in operation and three under construction. The additional contract is expected to further strengthen the company’s leadership in the global FLNG market.

 ㅇ The project will incorporate environmentally friendly technologies developed by Korean companies, including Selective Catalytic Reduction (SCR) systems, which reduce nitrogen oxide emissions by converting them into nitrogen and water through catalytic reactions, and Heat Recovery Steam Generators (HRSGs), which maximize energy efficiency by recovering waste heat to generate steam and electricity.

□ This project is particularly significant as it demonstrates how close collaboration among private companies, three government ministries, and two public institutions helped secure a major overseas infrastructure project for a Korean company while also laying the groundwork for broader participation in the U.S. energy infrastructure market.

 ㅇ As an investment-development project encompassing the entire value chain—from financing and construction to operations—it is expected to serve as a pivotal milestone in transforming Korea’s overseas construction sector from a traditional contract-based industry into a high-value-added integrated industry.

 ㅇ Furthermore, given that fabrication, shipbuilding, and assembly activities will be carried out in Korea, the project is expected to contribute to regional economic growth by generating additional business opportunities for small and medium-sized enterprises (SMEs) and mid-sized companies throughout the supply chain.

□ This case also demonstrates that participation in major overseas infrastructure projects can contribute not only to securing construction contracts but also to strengthening supply chain resilience.

 ㅇ Accordingly, amid growing supply chain uncertainties resulting from potential disruptions such as a closure of the Strait of Hormuz, the government plans to actively promote the diversification of import sources and the strengthening of transportation networks through strategic overseas infrastructure investments.

□ The government stated, “Government ministries and public institutions will work together as trusted partners to support Korean companies expanding overseas on the strength of their technological capabilities. Building on the partnerships established with global developers through this project, we hope to identify and pursue further opportunities for future collaboration.”

 ㅇ The government further emphasized, “We will continue to provide robust policy support to help transform the overseas construction industry into a high-value-added sector that creates quality jobs. In particular, we will expand investments in overseas energy, port, and other infrastructure projects to strengthen our capacity to respond to global supply chain challenges.”

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▲ Overview (Illustrative Image)