Samsung Heavy Successfully Demonstrated Its Own Natural Gas Liquefaction Process

□ Samsung Heavy Industries announced on November 18 that it successfully held a demonstration ceremony at the Geoje shipyard for "SENSE IV(SAMSUNG Enhanced Nitrogen Split Exapnsion IV)", the SHI''s in-house innovative natural gas liquefaction system.

□ The ceremony began on November 16 and was attended by many major LNG producers and classification societies  highlighting the high expectations.

□ The natural gas liquefaction system, called "an LNG plant on the sea", is one of the main processes of FLNG(Floating Liquefied Natural Gas). It is a technology that separates oil from gasoil and liquefies natural gas at under minus 162℃, reducing its volume 600 times.

This system is a key technology in the LNG industry that can increase global supply by enabling long-distance and large-scale transportation of natural gas more economically.

□ ''SENSE IV'', developed by SHI, can produce more than two million tons of LNG annually and reduce power consumption(which is required to produce one ton of LNG) by up to 14% compared to existing gas expansion liquefaction process, meaning high energy efficiency. SHI''s competitiveness for FLNG has been further strengthened thanks to the successful pilot test and demonstration.

□ Young-Gyu Kang, EVP of Offshore Projects Development & Execution at SHI, said "The successful development and demonstration of SENSE IV will further improve product reliability of the full LNG value chain including production, transportation, storage, and supply of natural gas", adding "SHI can leap forward as ''a total LNG solution provider'' with our capacity of EPC(Engineering·Procurement·Construction)".

※ CORAL FLNG that departed for Mozambique after a naming ceremony at SHI on November 15 is Africa''s first deep-sea FLNG.

SHI built three out of four FLNG orders placed around the world so far, showing high competitiveness in this field.