Hanwha Ocean Secures LNG Carrier Order Through U.S. Contract... Korea-U.S. Technology Cooperation Accelerates

Hanwha Shipping Orders Vessel, Hanwha Philis Shipyard Signs Contract
Construction by Hanwha Ocean... Linked to U.S. Shipbuilding and Shipping Revitalization
Response to Mandatory Use of U.S. Ships for U.S. LNG Exports

Hanwha Ocean has secured an order for a liquefied natural gas (LNG) carrier aimed at the North American market through a collaborative structure between its Korean and American shipyards. Through organic cooperation among group affiliates?Hanwha Shipping as the ordering party, Hanwha Philis Shipyard as the contracting entity, and Hanwha Ocean as the builder?Hanwha aims to contribute to the revitalization of the U.S. shipbuilding industry. This contract is being regarded as the official launch of the "Korea-U.S. joint construction model," which enables the group to respond to U.S. maritime demand using only its internal capabilities.

On the 22nd, Hanwha Ocean announced that it had signed a contract with Hanwha Philis Shipyard to build one LNG carrier valued at 348 billion KRW. The contract also includes an option for an additional vessel under the same conditions. The vessel was ordered by Hanwha Shipping, and Hanwha Philis Shipyard became the contracting party in order to meet the "U.S. ship" requirements within the United States. Hanwha Ocean, with its advanced technical expertise, will be responsible for the actual construction.

Hanwha Ocean announced on the 22nd that it has signed a contract to build one liquefied natural gas (LNG) carrier worth 348 billion KRW with Hanwha Philis Shipyard. The photo shows the 200th LNG carrier built by Hanwha Ocean in February. Hanwha Ocean
Photo by Hanwha Ocean

This structure is designed to respond to the U.S. federal government's policy of "priority transportation of U.S.-produced LNG by U.S. ships," which is scheduled to be implemented gradually starting in 2029. The policy mandates that LNG produced in the United States must be transported on U.S.-flagged vessels. To be recognized as a U.S. ship, requirements include contracting with a U.S. shipyard, approval from U.S. certification bodies, and partial work conducted within the United States.

Hanwha Philis Shipyard is familiar with the certification standards and registration procedures of the United States Coast Guard (USCG), and will take the lead on contract and certification matters for this project. In contrast, Hanwha Ocean’s Geoje facility will handle the complex design and construction processes. Through this division of roles, Hanwha Group has chosen a strategy that both satisfies U.S. policy requirements and optimizes the group’s internal capabilities.

This project marks the first case in approximately 50 years of an export-oriented LNG carrier being built with the participation of a U.S. shipyard. In a market traditionally dominated by European shipowners or Middle Eastern energy companies, a contract structure that places a U.S. shipyard at the forefront is highly unusual. The two companies plan to gradually expand their construction capabilities within the United States, using this contract as a starting point. Hanwha Ocean will transfer advanced technologies in stages, while Hanwha Philis Shipyard will broaden its business scope into the high-value-added ship sector.

The vessel will be operated by Hanwha Shipping in the future and is also expected to serve as a demonstration platform for eco-friendly ship technologies. The strategy is to proactively introduce and validate high-risk, high-cost technologies, and then promote their diffusion to external shipowners seeking commercialization.

A Hanwha Ocean official stated, "Hanwha Philis Shipyard is a key shipyard that has built more than half of the large commercial vessels subject to the Jones Act in the United States. This project will not only elevate Hanwha Philis Shipyard’s technical capabilities by expanding into the highly complex field of LNG carriers, but also serve as an opportunity to integrate Hanwha Ocean’s global technological expertise into the U.S. shipbuilding industry."

In December of last year, Hanwha Group acquired Hanwha Philis Shipyard for approximately 100 million USD (139.1 billion KRW) through Hanwha Ocean and Hanwha Systems. Since then, the group has been working to establish a marine industry ecosystem and expand shipbuilding capabilities within the United States by introducing smart systems, retraining personnel, and transferring technology.

This content was produced with the assistance of AI translation services.