Hanwha Philly Shipyard secures first US LNG carrier order in 50 years

On 22 July, Hanwha Ocean, a major South Korean shipbuilding conglomerate, announced it had signed a contract to build an LNG carrier for its US-based subsidiary, Hanwha Philly Shipyard. The vessel is scheduled for delivery in Q1 2028. The contract, valued at approximately US$250M, includes an option for a second vessel.

According to the official statement, the order was placed by Hanwha Shipping, the group’s shipowning subsidiary, with Hanwha Philly Shipyard, which in turn subcontracted the construction to Hanwha Ocean.

While construction of the LNG carrier will be primarily centered at Hanwha Ocean’s Geoje shipyard in South Korea, Hanwha Philly Shipyard will oversee certification and compliance work to meet US maritime regulations, including the safety standards set by the United States Coast Guard. The project will therefore follow a joint construction model, integrating the capabilities of both shipyards.

This order marks the first export-type LNG carrier contracted from a US shipyard since the late 1970s, aligning with broader efforts to revitalise the US shipbuilding and shipping industries. Hanwha Ocean sees this as a strategic response to the US federal government’s policy direction, which calls for US-built LNG carriers to transport domestically produced LNG starting in stages from 2029.

Strategic co-operation

As part of the project, Hanwha Ocean plans to gradually transfer advanced Korean shipbuilding technologies to Hanwha Philly Shipyard, enabling the US yard to enter the high value-added ship segment.

“Hanwha Philly Shipyard is a pivotal shipyard, having built more than half of all large commercial ships covered under the Jones Act in the United States,” said a Hanwha Ocean official.

Hanwha Ocean emphasised its leadership in LNG carrier technology and supply capabilities across North America. The company aims to establish a long-term co-operative construction system with Hanwha Philly Shipyard to significantly expand LNG carrier production capacity in the US.

This development follows Hanwha’s US$100M acquisition of US shipbuilder Philly Shipyard (PSI), as reported by Riviera last year. Since the acquisition, Hanwha has focused on enhancing PSI’s production capacity through the implementation of smart systems, workforce retraining, and ongoing technology transfers.