Hanwha Shipping, part of the South Korean Hanwha Group, recently made headlines by placing an order for a liquefied natural gas (LNG) carrier with Hanwha Philly Shipyard. This marks a notable moment as it’s the first LNG carrier ordered from the U.S. for export markets in nearly half a century. “We’re thrilled to utilize Hanwha’s remarkable shipbuilding expertise to empower American industrial partners in crafting next-gen LNG carriers after so long,” shared Ryan Lynch, President & CEO of Houston-based Hanwha Shipping.
As per Hanwha’s announcement, this project will adopt a joint-build approach. The primary contract will be executed by Hanwha Philly Shipyard in collaboration with Hanwha Ocean. While much of the construction will take place at the Geoje shipyard in Korea, compliance with U.S. regulations and safety certifications will be managed by the Philly facility. It’s important to note that this vessel won’t meet Jones Act requirements, which mandate that goods transported between two points within the U.S. must be on ships that are American-owned and built.
“Through this collaborative model, we aim to gradually pass on our advanced shipbuilding technologies to our partners at Philly Shipyard,” stated Hanwha representatives regarding their vision for expanding high-value shipbuilding capabilities domestically.
The first vessel is expected to hit the waters by mid-2028 and follows last December’s $100 million acquisition of Philly Shipyard by Hanwha—an entity responsible for about half of all large ocean-going vessels compliant with U.S. maritime laws since 2000.
This initiative aligns well with President Trump’s executive order aimed at revitalizing America’s maritime industry and countering China’s influence in global shipping sectors. Additionally, it comes on the heels of proposals from U.S. Trade Representatives advocating that a portion of LNG carriers exporting American gas should be flagged and constructed domestically—a move critics argue may not be feasible due to insufficient domestic production capacity.
Hanwha plans to leverage these vessels not only for energy exports but also as part of broader efforts toward enhancing national energy security amid rising geopolitical tensions affecting supply chains globally.
Moreover, there are reports suggesting that substantial investments are underway aimed at upgrading Philadelphia’s shipyard into a state-of-the-art facility capable of producing up to ten vessels annually by 2035—a significant leap forward for local manufacturing capabilities.
To comply with Jones Act regulations concerning coastwise trade, any qualifying vessels must be entirely constructed within U.S borders; however, while major structural components need local fabrication, non-structural parts like engines can still come from abroad if they adhere strictly to American standards.
According to Bloomberg estimates, each vessel is projected to cost around $250 million and boast an impressive capacity of 174,000 cubic meters equipped with cutting-edge technology such as GTT containment systems alongside M-type electronically controlled gas injection engines (MEGI). Stay updated on maritime developments—subscribe now!
