Hanwha orders historic LNG carrier from US yard
Hanwha Group Orders Historic LNG Carrier in U.S.
In a significant development for the U.S. shipbuilding industry, South Korea’s Hanwha Group has placed a groundbreaking order for a liquefied natural gas (LNG) carrier at its Hanwha Philly Shipyard in the United States. This marks the first export-market-viable vessel to be constructed in the U.S. in nearly 50 years, with the order valued at a minimum of $250 million. The delivery of the 174,000 cubic meter vessel is expected in the first half of 2028, signaling a renewed commitment to large-scale shipbuilding in America.
Investment and Technological Advancements
The LNG carrier order includes an option for a second unit and represents a pivotal moment for U.S. ambitions to reestablish itself in the global shipbuilding market. While a significant portion of the construction will occur at Hanwha Ocean’s facility in Geoje, South Korea, the Hanwha Philly Shipyard will oversee compliance with U.S. regulations and safety certifications. Although the vessel will not qualify under the Jones Act, Hanwha aims to transfer advanced shipbuilding technology to enhance high-value production capabilities in Philadelphia over time.
Ryan Lynch, president and CEO of Hanwha Shipping, expressed enthusiasm about the project, stating, “We’re excited to leverage Hanwha’s world-class shipbuilding prowess to equip American industrial partners with the skills to construct next-generation LNG carriers for the first time in nearly five decades.” This initiative aligns with former President Donald Trump’s executive order aimed at bolstering local shipbuilding capabilities and follows a proposed U.S. Trade Representative policy that mandates a percentage of LNG export tonnage to be U.S.-built and flagged, a proposal that has sparked controversy due to existing domestic limitations.
Hanwha acquired Philly Shipyard for $100 million in late 2023 and has plans to invest further in transforming the site into a modern production hub capable of constructing up to 10 vessels annually by 2035. The LNG carrier order is seen not only as a technological milestone but also as a political signal of renewed industrial collaboration between the U.S. and South Korea. Historically, Hanwha Philly has delivered nearly half of all Jones Act-compliant commercial ships over the past two decades, but this new order represents a shift toward more complex and expansive market opportunities.
Upskilling the U.S. Workforce
As the construction of the LNG carrier progresses, Hanwha plans to focus on upskilling the U.S. workforce, aiming to localize more components of the LNG carrier construction process. This initiative is expected to create jobs and enhance the skill set of American workers in the shipbuilding sector. The collaboration between Hanwha and U.S. industrial partners is poised to set a new standard in the industry, fostering innovation and competitiveness in the global market.
The landmark order from Hanwha Group not only highlights the potential for revitalizing U.S. shipbuilding but also underscores the importance of international partnerships in achieving technological advancements and economic growth. As the project unfolds, it will be closely watched for its implications on the future of shipbuilding in the United States.
