Hanwha Ocean and Hanwha Philly Shipyard to jointly build US-flagged LNG carrier
SOUTH Korea’s Hanwha Ocean has announced that it will build a liquefied natural gas carrier in partnership with its US affiliate, Hanwha Philly Shipyard. The contract is worth Won348bn ($250m), with an option to build an additional vessel.
The 174,000 cu m newbuilding, scheduled for delivery by January 2028, will be equipped with an LNG dual-fuel engine.
The ship is ordered by Hanwha Ocean’s US shipping affiliate, Hanwha Shipping. Hanwha Philly Shipyard is contracted as the US shipyard for the construction of the LNG carrier ordered by Hanwha Shipping, and then subcontracted to Hanwha Ocean.
Hanwha Ocean will be responsible for most of the shipbuilding at its Okpo shipyard in Geoje, before sending the vessel to Hanwha Philly Shipyard in Philadelphia for completion. Hanwha Philly Shipyard will then complete the finishing work and deliver the ship to Hanwha Shipping.
“Hanwha Philly Shipyard will support the certification processes to ensure compliance with US Coast Guard regulations and maritime safety standards,” Hanwha Ocean said.
“In order to be registered as a US-flagged ship, it is essential to meet USCG standards and certification. This process will be led by Hanwha Philly Shipyard, which has extensive experience in building ships in the US. Consequently, the project will operate under a co-build model involving the two shipyards.”
This is the first LNG carrier for export to be ordered to a US shipyard since the late 1970s. The project is part of a strategy to rebuild the US shipbuilding and maritime industries, as well as strengthening the country’s energy security.
Hanwha emphasised that the great strategic value of this lies in its enabling the company to respond pre-emptively to the US federal government’s mandatory requirement, which will be phased in from 2029, for US LNG exports to be transported using US-built LNG carriers.
Hanwha Shipping plans to utilise the ship as both a pre-emptive application and a platform to demonstrate green ship technologies.
A Hanwha Ocean official told Lloyd’s List: “With technology demonstrations, the vessel could also be used to export US LNG in the future.”
In December 2024, the South Korean conglomerate Hanwha Group acquired the US shipbuilder Philly Shipyard from Aker for $100m. The company was subsequently renamed Hanwha Philly Shipyard. Since then, Hanwha Group has strengthened the yard’s production capabilities by introducing smart systems, retraining personnel and transferring technology.
Hanwha Group aims to transform the shipyard in order to generate $4bn in sales by 2035, representing a tenfold increase on figures from 2024. The group also plans to increase its annual vessel production from 1.5 to 10 by 2035.
Through the joint construction, Hanwha Ocean will transfer its advanced shipbuilding technology to Hanwha Philly Shipyard in stages. In turn, the shipyard will expand its operations to include the construction of high-value vessels.
Korea Investment & Securities analyst Kang Kyung-Tae noted: “Considering the delivery schedule, the Hanwha Group is planning to prepare the facilities, technologies and manpower at Hanwha Philly Shipyard to manoeuvre the ship into its berth and complete the finishing work around the third and fourth quarters of 2027.
“The ship does not comply with the requirements of the Jones Act, but rather it would be a US-flagged LNG carrier involved in international trade.”
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