South Korean shipbuilder Samsung Heavy Industries Co. announced on Monday that it has signed a preliminary agreement worth 869.4 billion won ($635 million) with an African shipowner for a floating liquefied natural gas (FLNG) production unit.

The agreement, which runs through the end of September and may be extended by two months, marks a significant step in Samsung Heavy’s offshore business strategy.

The contract is equivalent to 8.8 percent of the company’s total revenue last year.

While Samsung did not disclose the specific project site, industry sources believe the FLNG unit will be deployed at the Coral North gas field off the coast of Mozambique, a region attracting increasing attention from global energy companies amid surging demand for liquefied natural gas.

Samsung Heavy has already secured orders this year for one LNG carrier, nine shuttle tankers, two ethane carriers, four crude oil tankers, and two container ships. Including the latest preliminary deal, total orders stand at $3.3 billion.

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