Photo credit: Philly Shipyard
South Korea’s Hanwha Ocean has unveiled a landmark order for a liquefied natural gas (LNG) carrier at a U.S. shipyard.
An affiliate of Hanwha Ocean ordered a liquefied natural gas vessel from Hanwha Philly Shipyard, a US-based yard recently acquired by Hanwha Ocean. Specifically, Hanwha Shipping, a U.S. subsidiary of Hanwha Ocean, ordered a liquefied natural gas (LNG) carrier from its affiliate, Hanwha Philly Shipyard.
Under the structure of this project, Hanwha Philly Shipyard, as the U.S.-based shipyard, signs the primary shipbuilding contract with Hanwha Shipping – a Hanwha Ocean affiliate and the project’s owner – and then executes the contract as part of a joint-build model with Hanwha Ocean.
Hanwha Ocean’s chief executive officer Kim Hee-cheul has announced the deal on Tuesday, mentioning that the contract specifies one LNG carrier and one option for an additional vessel.
In December 2024, Hanwha Ocean, together with Hanwha Systems, completed the acquisition of Philly Shipyard in the U.S., and launched Hanwha Philly Shipyard, establishing a foothold in the country’s naval ship market.
The order is expected to enhance shipbuilding cooperation between South Korea and the United States.
The order includes an option for an additional unit, which is considered standard in shipbuilding contracts. This project will be operated as a joint construction model of the two shipyards. A “significant portion” of the ship’s construction would take place in Hanwha Ocean’s Geoje shipyard in South Korea. Hanwha Philly Shipyard would be responsible for US regulatory compliance and safety certifications.
The two companies, Hanwha Ocean and Hanwha Philly Shipyard, intend to establish a collaborative framework enabling LNG carrier production in the U.S. and position Hanwha for full-scale entry into the North American LNG shipping market.
Hanwha acquired last year Philly Shipyard for $100m as it is targeting the U.S. market for further growth in the commercial shipbuilding and in defense.
Hanwha plans to invest in Philly facilities to expand production using advanced shipbuilding technologies. Through this collaboration, Hanwha Ocean plans to gradually transfer South Korea’s advanced shipbuilding technology to Hanwha Philly Shipyard.
Philly Shipyard, established in 1997, delivered around 50% of all large ocean-going U.S. Jones Act commercial ships since 2000, including tankers and container ships.
“This order allows Hanwha Philly Shipyard to elevate its technological capabilities by expanding into the highly specialized LNG carrier sector, while providing an opportunity to Hanwha Ocean to apply its shipbuilding technology within the U.S. market,” a Hanwha Ocean official emphasized.
