South Korean shipbuilder Hanwha Ocean has signed a KRW348 billion ($252 million) contract with its US affiliate, Hanwha Philly Shipyard, to build one Liquefied Natural Gas (LNG) carrier, with an option for a second vessel.
The contract is structured so that Hanwha Philly Shipyard will first sign the construction contract with another affiliate, Hanwha Shipping, and then subcontract the actual construction work to Hanwha Ocean in South Korea.
The project is described as the first export-type LNG carrier to be ordered from a US shipyard in about 50 years and is part of a strategy to rebuild the US shipbuilding industry. It is also a response to a potential US policy mandating the use of US-flagged carriers for LNG exports, which could be implemented in stages starting in 2029.
Through this joint construction model, Hanwha Ocean plans to transfer its shipbuilding technology to Hanwha Philly Shipyard. The US yard will be responsible for certification work to meet US Coast Guard standards for a US-flagged vessel.
Hanwha Group acquired Hanwha Philly Shipyard in December 2024 for approximately $100 million.