One of South Korea’s major shipbuilders, Hanwha Ocean Co., is set to construct a liquefied natural gas (LNG) carrier in collaboration with its U.S.-based affiliate, Hanwha Philly Shipyard, marking a rare joint shipbuilding initiative targeting the American market.

On July 22, Hanwha Ocean announced that it had signed a construction contract worth 348 billion won ($267 million) for a single LNG carrier commissioned by Hanwha Philly Shipyard. The agreement also includes an option for a second vessel.

The deal represents a three-way collaboration among affiliates of Hanwha Group’s shipbuilding and shipping divisions. Hanwha Shipping, a maritime affiliate of Hanwha Ocean, placed the order with Hanwha Philly Shipyard. The U.S. shipyard subsequently finalized the contract and subcontracted construction to Hanwha Ocean.

At the heart of the project is a joint shipbuilding model that leverages the capabilities of both Korean and American yards to produce a vessel compliant with U.S. maritime regulations. The majority of the construction will be carried out at Hanwha Ocean’s Geoje shipyard in South Korea. Hanwha Philly Shipyard will oversee tasks related to meeting U.S. Coast Guard (USCG) safety and regulatory standards—requirements essential for registering the vessel under a U.S. flag.

Hanwha Philly Shipyard is expected to lead these certification efforts, drawing on its extensive track record in constructing commercial vessels under the Jones Act, a federal law that mandates ships used in domestic U.S. trade be built, owned, and operated by U.S. citizens or permanent residents.

“This project marks a significant step forward for Hanwha Philly Shipyard as it expands into the high-value LNG carrier market,” a Hanwha Ocean official said. “It also provides an opportunity to integrate Hanwha Ocean’s global technical expertise into the U.S. shipbuilding sector.”

The deal is noteworthy as one of the first export-bound LNG carrier orders placed with a U.S. shipyard in nearly five decades, dating back to the late 1970s. The contract is also viewed as a preemptive response to the U.S. federal government’s plan to phase in a requirement—starting in 2029—that U.S.-built LNG carriers be used to transport domestically produced LNG for export.
Source: Chosun Daily