Hanwha Philly Shipyard has secured a 348 billion won ($250 million) order to build a liquified natural gas (LNG) carrier for Hanwha Shipping LLC, marking the first order by a US shipyard for an export-bound LNG vessel in nearly 50 years, reports Business Korea.
The deal also marks Hanwha Philly’s first order since it was acquired by South Korea’s Hanwha Group in December.
Hanwha Ocean Wins 348 Bil. Won LNG Carrier Contract
The Philadelphia-based shipyard signed the LNG tanker construction order with the affiliated company, alongside an option for a second vessel, according to a regulatory filing by Hanwha Ocean Co. on Tuesday.
The vessel will be built in collaboration with Hanwha Ocean in South Korea, in line with upcoming US regulations requiring goods shipped between two US ports to be transported on vessels that are US-owned, operated and built, a policy set to take effect from 2029.
“This contract aligns with the US strategy to revive the US shipbuilding and shipping industries and to strengthen energy security,” Hanwha Group said.
It is also expected to pave the way for closer shipbuilding cooperation between South Korea and the US, the group added.
A significant portion of the vessel’s construction will take place at Hanwha Ocean’s shipyard in Geoje, South Korea.
Hanwha Ocean will gradually transfer high-value shipbuilding technology to Philly Shipyard to transform the US arm into a mid-to-large-sized shipbuilder capable of constructing LNG tankers.
Hanwha Group acquired Philly Shipyard for $100 million in December to make inroads into the world’s largest economy.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Business Korea
