Hanwha Ocean to build US$504M LNG carrier pair for new shipowning subsidiary

On 10 February, Hanwha Ocean revealed an order for the two LNG carriers, slated for delivery in the second half of 2027. The shipbuilder valued the contract at approximately US$504M and disclosed the buyer is Hanwha Shipping LLC, an affiliated company.

Hanwha Shipping was launched in April 2024 with the aim of serving as a platform for eco-friendly and digital ship technologies. According to shipbroking sources, the subsidiary’s primary focus will be on shipowning.

In a 12 April filing, Hanwha Ocean noted, “Through the operation of ships incorporating eco-friendly and digital technologies we are currently developing, we aim to secure verification of practicality and safety while actively building co-operative relationships with our customers.”

At the beginning of last year, Hanwha Group highlighted its establishment of a global shipping company, designed to operate a fleet of cutting-edge, future-ready vessels.

Notably, local media reports published at the end of January 2025 highlighted Hanwha Ocean achieved its first profitable year since 2020 in 2024. The group’s merchant ship division saw a significant recovery, driven by increased demand for high-value-added vessels such as LNG carriers.

LNG carrier orderbook

As of January 2025, Greece-based Xclusiv Shipbrokers reported 341 LNG carriers are currently on order, representing 48% of the global fleet. Most of the under-construction vessels are in the 141,000-200,000-m³ size range.

Another Greek shipbroking firm, Intermodal, noted last week that LNG carrier fleet expansion is expected to continue robustly, with tonnage projected to grow by 10% in 2025 and 12% in 2026.

However, the pace of orders has slowed compared with the previous years’ surges, leading to price corrections. Intermodal’s data indicates newbuilding prices for a 174,000-m³ vessel decreased from US$260M at the beginning of January to US$257M by the end of the month, reflecting a 2% drop from the 2024 average of US$263M.