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Hanwha Ocean expects the recovery in the LNG newbuilding market to be led by US export projects and the phase-out of steam LNG carriers.
The shipbuilder said in its third-quarter report that 14 steam LNG carriers have been sold for demolition to date in 2025.
This compares to six in 2023 and seven in 2024, according to Hanwha Ocean.
The shipbuilder said the market correction continues due to low charter rates relative to high newbuilding prices, but demand recovery is anticipated with FID approvals for LNG export terminals in the US, Qatar, and Canada.
Hanwha Ocean also noted that there is a near-term pressure from high LNG carrier deliveries, uncertainty risk elevated by US trade policies (tariffs, US–China tension, SHIPS Act), and delayed adoption of the IMO Net Zero Framework.
Six LNG carriers
Hanwha Ocean booked orders for six LNG carriers during the January-September period this year.
The shipbuilder received orders for 19 LNG carriers in 2024.
This year’s orders include contracts with its with its US affiliate Hanwha Philly Shipyard.
In August, Hawnaha Ocean announced a contract with Hanwha Philly Shipyard to build a second LNG carrier.
This vessel is worth $250 million and scheduled for delivery by February 2028.
In July, Hawnha Ocean announced a contract for what it says is the first US-ordered, export-market-viable LNG carrier in almost 50 years.
This LNG carrier is also valued at $250 million and is scheduled for delivery in January 2028.
Hanwha Ocean said that its US unit, Hanwha Shipping, placed the orders, while Hanwha Philly Shipyard will act as a subcontractor.
While most of the LNG carrier construction will take place at Hanwha Ocean’s Geoje yard, Hanwha Philly Shipyard will support the certification process required by the US Coast Guard (USCG) to meet statutory and safety standards.
As of the end of September 2025, Hanwha Ocean had 64 LNG vessels worth $15.6 billion in its orderbook.
Hanwha Ocean reported revenue of 3.02 trillion won ($2.1 billion) and operating profit of 290 billion won in the third quarter, both up year-on-year.
NextDecade
Hanwha and its units have a stake in US LNG firm NextDecade, which is building the Rio Grande LNG export terminal in Texas.
According to the quarterly presentation, Hanwha Group has a 22.7 percent stake (HIP 9.1 percent, Aerospace 6.8 percent, Ocean 6.8 percent) in NextDecade and is the largest shareholder.
NextDecade recently took final investment decisions on the fourth and fifth train, bringing the total expected LNG production capacity under construction at Rio Grande LNG to approximately 30 mtpa.
“Up to 4 additional trains are scheduled to be built in the future, creating demand for new construction of more than 20 LNG ships for transportation volume,” Hanwha Ocean said in the results report.