Hanwha Ocean, First Synergy in U.S. Entry... LNG Carrier Contract

[Financial News] Hanwha Ocean announced that it has signed a construction contract for one LNG carrier worth 348 billion KRW with its affiliate Hanwha Philippines Shipyard and secured an option contract for an additional vessel.
This contract involves Hanwha Philippines Shipyard, an affiliate of Hanwha Ocean, signing a contract as a U.S. shipyard for the construction of LNG carriers ordered by Hanwha Shipping, followed by a subcontract construction contract with Hanwha Ocean.
It is the first export-type LNG carrier ordered to a U.S. shipyard in about 50 years since the late 1970s, promoted as part of the U.S. shipbuilding and shipping industry reconstruction and energy security enhancement strategy.
In particular, it is expected to have significant strategic value as it can proactively respond to the U.S. federal government's policy to mandate the use of U.S.-made LNG carriers for U.S. LNG exports, which is scheduled to be implemented in stages from 2029.
Through this order, Hanwha Ocean has secured unrivaled technology and supply leadership in the North American LNG carrier market. It also plans to expand its LNG carrier construction capabilities in the U.S. by utilizing its strength of having production bases in both Korea and the U.S., the only one in the world.
Through joint construction, Hanwha Ocean plans to gradually transfer Korea's advanced shipbuilding technology to Hanwha Philippines Shipyard, while Hanwha Philippines Shipyard aims to expand its business area into the high-value-added ship sector. In particular, this order is evaluated as a strategic decision by Hanwha Shipping, with Hanwha Ocean securing work and Hanwha Philippines Shipyard acquiring technology, bringing them one step closer to entering the U.S. market.
A significant portion of the LNG carrier construction will be centered on Hanwha Ocean's Geoje plant, but Hanwha Philippines Shipyard will support certification work to meet U.S. Coast Guard (USCG) U.S. regulations and marine safety standards. If the vessel needs to be registered as a U.S. ship, meeting USCG standards and certification work is essential, and Hanwha Philippines Shipyard, with extensive experience in building ships in the U.S., will lead this effort. This project will be operated as a joint construction model between the two shipyards.
A Hanwha Ocean official said, "Hanwha Philippines Shipyard has been a pivotal shipyard, building more than half of the large commercial vessels subject to the Jones Act in the U.S.," adding, "This project will elevate Hanwha Philippines Shipyard's technical capabilities through expansion into the high-difficulty LNG carrier sector, while also integrating Hanwha Ocean's global technology into the U.S. shipbuilding industry."
Hanwha Group established a foothold for entering the U.S. market by acquiring Hanwha Philippines Shipyard for about 100 million USD through Hanwha Ocean and Hanwha Systems in December last year. This LNG carrier order is expected to be a signal for contributing to the substantial reconstruction of the U.S. shipbuilding and shipping industry.
hoya0222@fnnews.com Kim Dong-ho Reporter