Energy giant Shell has scrapped a KRW 5.27 trillion ($4.62bn) order at Samsung Heavy Industries (SHI) for three floating LNG (FLNG) units.

The deal was struck last year and the facilities were due by the end of November 2023.

But the Korean shipbuilder said on Thursday the contract was torn up due to worsening market conditions.

Samsung said last year that the price was only for hull construction and could increase as remaining parts like decks were signed for in the second half of 2016.