Hanwha Power Systems and Samsung Heavy Industries Join Forces to Localize Core FLNG Equipment

Joint Development Agreement Signed for Customized Gear-type Compander
Basic Design to Be Completed by 2026... Supply Chain Stability Expected
Localization of Liquefaction Equipment That Was Entirely Dependent on Imports

Hanwha Power Systems and Samsung Heavy Industries have embarked on the domestic development of the "Gear-type Compander," a core piece of equipment for floating liquefied natural gas facilities (FLNG). This collaboration marks an effort by domestic companies to achieve self-reliance in the liquefaction equipment sector, which has traditionally relied heavily on foreign technology.

Hanwha Power Systems announced on the 23rd that it has signed a joint development agreement with Samsung Heavy Industries for the "Gear-type Compander," dedicated liquefaction equipment for the liquefaction process system "SENSE." Samsung Heavy Industries' SENSE is a liquefaction process system developed in 2017 specifically for FLNG. This project combines Hanwha Power Systems’ capabilities in manufacturing and operating large-scale companders. Both companies expect to achieve technological independence, strengthen cost competitiveness, and ultimately realize the localization of core equipment.

Hanwha Power Systems announced on the 23rd that it has signed a joint development agreement with Samsung Heavy Industries for the liquefaction process system "SENSE" dedicated liquefaction equipment called the "Gear-type Compander." The photo shows the compander under development, and its appearance may change after completion. Photo by Hanwha Power Systems

FLNG is referred to as a "massive offshore plant on the sea," performing the entire process of liquefying, storing, and offloading natural gas directly at sea. The gear-type compander currently under development is a key piece of equipment that integrates the compressor and expander into a single unit, significantly improving the efficiency of the refrigeration cycle. The compressor compresses gas at high pressure, while the expander generates power during the cooling process.

Through this agreement, the two companies will pursue the localization of core FLNG liquefaction equipment for the first time in Korea. Their plan is to complete the basic design by early 2026, internalize the technology, expand versatility with electric motor-based power, reduce the number of rotating machines and lighten modules, and optimize delivery schedules. They also aim to enter overseas markets by participating in manufacturing and global projects in the future.

Lim Changwoo, CTO and Head of Equipment Development Center at Hanwha Power Systems, said, "By localizing FLNG liquefaction equipment, which has been entirely dependent on foreign sources, we will achieve both supply chain stability and cost reduction. We will continue to expand collaboration to strengthen the competitiveness of domestic industries."

Min Junho, Executive Vice President of the Marine Engineering Team at Samsung Heavy Industries, stated, "This project is a turning point for Korea’s shipbuilding industry to secure independent technology in the eco-friendly energy market. Based on the success of localization, we will secure a competitive edge in the offshore plant market."