South Korean shipbuilding company Hanwha Ocean’s U.S. subsidiary, Hanwha Shipping, announced on Tuesday that it has ordered a liquefied natural gas (LNG) carrier worth approximately $252 million from its Hanwha Philadelphia Shipyard located in Pennsylvania.
According to the agreement, the vessel will be built in South Korea and will fly the U.S. flag, with delivery expected in the first half of 2028.
This transaction comes as the United States is committed to revitalizing its domestic shipbuilding industry and expanding its commercial and military fleets. Hanwha Systems and Hanwha Ocean acquired the Philadelphia Shipyard for $100 million in December last year.
Jefferies shipping analyst Omar Nokta stated: “This agreement can be seen as the ‘first step’ in enhancing U.S. shipbuilding capacity.” He noted that the United States, as the world’s largest LNG exporter, holds a market share of nearly 25%.
Hanwha Shipping stated that this is the first order for a U.S.-flagged LNG carrier in nearly 50 years.
Ryan Lynch, CEO of Hanwha Shipping Houston, said: “This agreement solidifies Hanwha’s global leadership in LNG carrier construction, and we look forward to replicating this success model in the United States.”
Corporate statements show that the majority of the ship’s construction will be completed at Hanwha Ocean’s Geoje shipyard in South Korea.
A Hanwha Shipping spokesperson revealed that employees from the Philadelphia Shipyard will travel to Geoje for training.
The Philadelphia Shipyard will be responsible for ensuring the vessel meets the regulatory compliance and safety certification requirements necessary for U.S. registration.
Earlier this year, the U.S. Trade Representative’s Office announced that starting in April 2029, LNG producers must transport 1% of their exports on U.S.-built vessels. This proportion will increase to 15% by April 2047 and remain at that level.
Hanwha Ocean stated that the contract is valued at 348 billion won ($252 million) and includes an option for an additional vessel.
(Reported by Los Angeles correspondent Lisa Bartlein; Edited by Daniel Wallis and Cynthia Osterman)
