First report of shipyard vying to build LNG carriers in US

South Korean shipyard group Hanwha Ocean is moving to be the first to build an LNG carrier in the United States after the US Trade Representative published a plan to require US-built vessels to carry a proportion of US LNG cargoes from 2028. 

A Bloomberg report asserted that Hanwha Philly Shipyard in Philadelphia, Pennsylvania, is planning to build "the first, US-built" LNG carrier, and named Houston, Texas-based Hanwha vice president commercial shipping Ryan Lynch in the report. None of Hanwha’s employees were quoted directly, but the report paraphrased Mr Lynch, saying the US would require as many as five to seven US-flagged, US-operated LNG carriers by 2030. 

On his public social media profile on professional networking platform LinkedIn, Mr Lynch welcomed the USTR action that will add fees and restrictions on US LNG cargoes from April 2028.

"A very thoughtful consideration has been given to strategic sectors including LNG and mariners. We, at Hanwha Shipping, look forward to supporting the USG on actionable deployment of LNG carriers (LNGCs)," Mr Lynch wrote.

Mr Lynch noted in the post the USTR rules on shipping a proportion of LNG cargoes on US-built LNGCs.

"A very detailed order on LNGC carriage (Annex IV), where no restrictions until 2028, where after 1% of exports, gradually increasing thereafter to 15% in 2047. This includes a covenant to report to DOE equities, and a suspension of export licence for non compliance," he said.

Mr Lynch also posted in support of US President Trump’s 9 April Shipbuilding Executive Order aimed at restoring what the order asserts was once ’America’s maritime dominance’ and the earlier SHIPS for America Act proposal in the US Congress. The bill is a bipartisan proposal put in front of congress in 2024 by two Democratic and two Republican representatives.

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Addressing congressional leaders, Mr Lynch said of the proposed bill, "The proposed SHIPS for America Act will provide the United States with a pathway to maritime excellence once again," and highlighted Hanwha Group’s shipbuilding expertise. 

"Hanwha Shipping is a citizen-shipowner with crude, LNG, LPG and container capabilities - as well as being an example of an internationally acclaimed centre of maritime excellence connecting research, building, owning, chartering and operations - which stands ready to support the US ecosystem," he said.

Hanwha Group acquired Philly Shipyard from Norway’s Aker Group shipbuilding business in 2024. The US$100M deal closed in December 2024. 

At the time, the deal appeared to signal that Hanwha Ocean subsidiaries Hanwha Systems and Hanwha Ocean were targeting the US Jones Act market. The USTR port fees structure looks to offer Hanwha a new opportunity in the LNG shipbuilding market.

As a publicly traded shipbuilder, Philadelphia Shipyard has delivered both product tankers and container ships for the US’ Jones Act-controlled market since the shipyard was established in 1997. It has recently built or is currently building a subsea rock installation vessel for the offshore wind market, 3,600-TEU, LNG-fuelled container ships, and a series of National Security multi-mission vessels under a US Maritime shipbuilding initiative. Philly Shipyard also teamed with Vard Marine to complete a design study for a series of hospital ships for the US Navy.