South Korean shipbuilder 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 Pennsylvania-based sister company, Philly Shipyard.
According to the agreement, the vessel will be built in South Korea and 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 Philly Shipyard for $100 million last December.
Jefferies shipping analyst Omar Nokta noted: “This agreement appears to be the ‘first step’ in the U.S. enhancing its shipbuilding capabilities.” He specifically mentioned that the United States, as the world’s largest LNG exporter, has captured nearly 25% of the market share.
Hanwha Shipping stated that this is the first order for a U.S.-flagged LNG carrier placed in the United States 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 in the United States.”
Corporate statements show that the majority of the ship’s construction will be completed at Hanwha Ocean’s shipyard in Geoje, South Korea. A Hanwha Shipping spokesperson revealed that employees from Philly Shipyard will travel to Geoje for training. Philly Shipyard will be responsible for overseeing the vessel’s compliance with regulatory and safety certification requirements necessary for U.S. registry.
Earlier this year, the U.S. Trade Representative’s office announced that starting in April 2029, LNG producers must ship 1% of their exports on U.S.-built vessels, with this proportion gradually increasing to 15% after April 2047.
Hanwha Ocean stated that the contract is valued at 348 billion won (approximately $252.03 million) and includes an option for an additional vessel.
(Reuters – Reported by Los Angeles correspondent Lisa Bartlein; Edited by Daniel Wallis and Cynthia Osterman)
