Hanwha orders LNG carrier in U.S. shipbuilding milestone

A Hanwha-built LNG carrier at sea. Hanwhahas ordered a liquefied natural gas (LNG) carrier from its affiliate, Hanwha Philly Shipyard. The vessel will be constructed with advanced technology and propulsion systems, and will be the first U.S.-ordered, export-market-viable LNG carrier in almost 50 years, dating back to the late 1970s. (Image: Hanwha Ocean)

Hanwha Shipping, a U.S. subsidiary of Hanwha Ocean, has placed an order for a liquefied natural gas (LNG) carrier with Hanwha Philly Shipyard — the first U.S.-ordered, export-market-viable LNG vessel in nearly half a century. The groundbreaking contract, announced in late July, includes an option for a second vessel and represents a pivotal moment in the resurgence of U.S. shipbuilding capacity for the global LNG trade.

“This is the first time in almost 50 years that a U.S.-ordered LNG carrier capable of serving the export market will be built,” said Ryan Lynch, president and CEO of Houston-based Hanwha Shipping. “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.”

Hanwha Ocean, one of the world’s top builders of LNG carriers and the first to deliver more than 200 of them, will support the project through a joint-build model. While a significant portion of the vessel’s construction will be carried out at Hanwha’s Geoje shipyard in Korea, Hanwha Philly Shipyard will handle compliance with U.S. Coast Guard regulations and safety standards. Over time, Hanwha plans to transfer more advanced shipbuilding technology to its U.S. yard.

Revitalizing U.S. maritime manufacturing

The contract marks a major step toward revitalizing U.S. commercial shipbuilding at a time when geopolitical tensions and energy security concerns are driving demand for domestically flagged and operated LNG transport vessels. The newbuild project supports U.S. trade and industrial policy initiatives aimed at increasing the use of American-built, American-crewed ships to move domestically produced LNG to global markets.

Hanwha acquired Philly Shipyard in December 2023 for $100 million, making it the only company in the world with LNG carrier shipbuilding capabilities in both Korea and the United States. The Philadelphia yard has delivered more than half of all large Jones Act commercial vessels since 2000 but had not previously participated in international LNG carrier construction.

“This amazing milestone reinforces Hanwha’s global leadership in LNG carrier construction, which we are eager to replicate in the U.S.,” Lynch said.

The move follows growing calls from U.S. policymakers and energy companies to rebuild domestic maritime infrastructure, in part to reduce dependence on foreign shipping and ensure that more of the LNG export value chain remains onshore.

LNG carriers for a new era

The vessel ordered by Hanwha Shipping will feature advanced propulsion systems and energy-efficient technologies in line with next-generation environmental and performance standards. While the immediate plan is to fulfill internal Hanwha Group transport needs, the long-term goal is to establish a robust U.S.-flagged LNG carrier fleet capable of competing globally.

As part of that effort, Hanwha intends to create thousands of skilled U.S. shipyard jobs and invest in smart production systems, modernized facilities, and workforce training programs at its Philadelphia yard.

“This contract is more than a ship order — it’s a blueprint for building back U.S. capacity in one of the most strategically important sectors of the energy supply chain,” Lynch said.

Strategic shift for U.S. LNG exports

The project also comes as the U.S. LNG export sector continues to expand, with growing emphasis on shipping capacity that aligns with U.S. environmental, labor, and security standards. Several recently proposed federal trade measures call for greater use of U.S.-built and -crewed LNG tankers, which the Hanwha project is positioned to support.

“Hanwha is positioning itself to lead in North America’s emerging LNG carrier market,” the company said in a statement. “By leveraging U.S.-sourced LNG and modern shipbuilding capacity, Hanwha aims to offer a reliable, cost-effective solution to rising global demand.”