Hanwha inks deal with its US yard to build LNG carrier

Hanwha Ocean said on Monday that it has signed a contract to build one LNG carrier worth 348 billion won ($250 million) with its affiliate, Hanwha Philly Shipyard.

The vessel is scheduled for delivery by January 2028, while the contract also includes an optional LNG carrier.

Hanwha Ocean said that its unit Hanwha Shipping placed the order, while Hanwha Philly Shipyard will act as a subcontractor.

According to the shipbuilder, this project marks the first export-type LNG carrier order from a US shipyard since the late 1970s.

It is particularly significant as a strategic response to the US federal government’s upcoming mandate, starting in 2029, to utilize US-built LNG carriers for exports—an important step in promoting American LNG exports and transportation.

As the only shipbuilding firm with yards in both Korea and the US, Hanwha Ocean plans to further expand its capacity to directly build LNG carriers within the US in collaboration with Hanwha Philly Shipyard, it said.

Through this joint project, Hanwha Ocean aims to gradually transfer South Korea’s advanced shipbuilding technology to Hanwha Philly Shipyard, helping the latter diversify into high-value-added vessel sectors, it said.

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.

The USCG certification, essential for registering vessels in the US, is primarily led by Hanwha Philly Shipyard, and both shipyards will collaborate closely during the construction process.

Hanwha Shipping

Last December, Hanwha Group secured a strategic foothold in the US market by acquiring Hanwha Philly Shipyard through Hanwha Ocean and Hanwha Systems.

Earlier this year, Hanwha Ocean announced that it will build two LNG carriers for its shipping unit Hanwha Shipping.

This order is valued at approximately $506 million, or $253 million per vessel.

Hanwha Ocean will deliver the LNG carriers by September 2027.

Hanwha Ocean announced in April 2024 that it has established Hanwha Shipping with the participation of its US unit USA Holdings.

It is worth mentioning here that Hanwha and its units also have a stake in US LNG firm NextDecade.

NexDecade is building the Rio Grande LNG export terminal in Texas.