Hanwha Philly books landmark LNG carrier contract

Photo: Hanwha Ocean

Korea’s Hanwha Ocean said yesterday (see originaal release) that it had signed a contract with its affiliate Hanwha Philly Shipyard to build one LNG carrier worth 348 billion won [about $251 million], and had also secured an option contract for one additional ship.

The contract is structured so that Hanwha Philly Shipyard, as a U.S. shipyard, will first sign the contract for the construction of an LNG carrier ordered by Hanwha Shipping, an affiliate of Hanwha Ocean, and then subcontract the construction contract to Hanwha Ocean.

“We’re excited to leverage Hanwha’s world-class shipbuilding prowess to equip American industrial partners with the skills to construct next-generation LNG carriers for the first time in nearly five decades,” said Ryan Lynch, president & CEO of Houston-based Hanwha Shipping. “Hanwha Ocean—Philly Shipyard’s Korean shipbuilding affiliate—became the world’s first shipbuilder to produce and deliver its 200th LNG carrier earlier this year. This amazing milestone reinforces Hanwha’s global leadership position in LNG carrier construction, which we are eager to replicate in the U.S.”

This is the first LNG carrier to be ordered from a U.S. shipyard in about 50 years and is being promoted as part of a strategy to rebuild the U.S. shipbuilding and shipping industries and strengthen energy security.

Hanwha Shipping plans to utilize the ordered vessels as a strategic platform to support U.S. energy security and global energy reliability. In addition to fulfilling internal group transport requirements, the vessels will play a key role in establishing the U.S.-flagged LNG fleet, reinforcing American leadership in global energy logistics, and accelerating the reindustrialization of the American maritime sector. By leveraging U.S.-sourced LNG and modern shipbuilding capacity, Hanwha aims to offer a reliable, cost-effective solution to rising global demand—particularly amid heightened geopolitical tensions and increasing pressure on energy supply chains.

“In particular,” says Hanwha Ocean, “its strategic value is great in that it can preemptively respond to the U.S. federal government’s policy of mandating the export transportation of U.S. LNG using U.S. LNG carriers, which it plans to implement in stages starting in 2029.”

Hanwha Ocean, the only company with production bases in Korea and the United States, plans to establish a cooperative construction system with Hanwha Philly Shipyard to substantially expand its capacity to build LNG carriers in the United States.

Hanwha Ocean plans to gradually transfer Korea’s advanced shipbuilding technology to Hanwha Philly Shipyard, while Hanwha Philly Shipyard seeks to expand its business area into the high value-added ship sector. In particular, this order is evaluated as a strategic decision by Hanwha Shipping to secure work for Hanwha Ocean and acquire technology for Hanwha Philly Shipyard, bringing it one step closer to entering the U.S/ market.

A significant portion of LNG carrier construction is centered around Hanwha Ocean’s Geoje plant, but , says the Hanwha Ocean release, “Hanwha Philly Shipyard plans to support certification work to meet U.S. laws and maritime safety standards of the United States Coast Guard (USCG). If it is to be registered as a U.S. vessel, it is essential to meet the standards of the USCG and undergo certification, and Hanwha Philly Shipyard, which has extensive experience in building ships in the U.S., will take the lead in this. As such, this project will be operated as a joint construction model of the two shipyards.”

“Hanwha Philly Shipyard is a pivotal shipyard that has built more than half of the large commercial ships subject to the Jones Act in the U.S.,” said a Hanwha Ocean official. “This project will serve as an opportunity to further elevate Hanwha Philly Shipyard’s technological capabilities by expanding into the high-difficulty ship sector of LNG carriers, while also grafting Hanwha Ocean’s global technological capabilities onto the U.S. shipbuilding industry.”

Hanwha Group acquired Hanwha Philly Shipyard for approximately $100 million in December of last year through Hanwha Ocean and Hanwha Systems, establishing a bridgehead for advancing into the U.S. market. Since then, it has been pushing to strengthen Hanwha Philly Shipyard’s production capabilities through the introduction of smart systems, personnel retraining, and technology transfer. This LNG carrier order is expected to be a signal that will contribute to the actual reconstruction of the U.S .shipbuilding and shipping industry.