At least one LNG tanker is to be built for Hanwha in a project widely seen as a strategic move to deepen shipbuilding collaboration between the USA and South Korea.
In December, the South Korean Hanwha Group, which also operates shipyards in its own country, swallowed up the then Philly Shipyard – for just $100 million. Since then, it has been unclear whether and what kind of orders could be obtained. However, there had already been talks between the governments in Washington and Seoul in May about closer cooperation in shipbuilding.
Hanwha has now announced an order in a stock exchange filing. According to the filing, Hanwha Ocean will commission a liquefied natural gas (LNG) tanker with a capacity of 174,000 cubic meters from the US shipyard for the equivalent of around USD$251.2 million.
It marks the first overseas LNG tanker order for the Philadelphia-based shipyard in nearly 50 years and is expected to lay the foundation for increased shipbuilding cooperation between South Korea and the United States, Hanwha Ocean said.
“This project is in line with the US government’s strategy to revitalize the shipbuilding and shipping industry while strengthening energy security,” it added.
Under the contract, Hanwha Ocean will gradually transfer its shipbuilding expertise to Hanwha Philly Shipyard. The two companies plan to collaborate to enable the production of LNG carriers in the United States and pave the way for Hanwha’s full-scale entry into the North American LNG shipping market.
However, most of the construction of the vessel for this contract will take place at Hanwha Ocean’s Geoje shipyard in South Korea. Hanwha Philly Shipyard will mainly carry out the certification and compliance work required by the US Coast Guard, including meeting US maritime safety regulations for flag registration.
Nevertheless, those involved are confident: “This contract will allow Hanwha Philly Shipyard to enhance its technological capabilities by entering the highly specialized LNG carrier sector, while providing Hanwha Ocean with a strategic foothold for applying its shipbuilding technology to the US market,” added a Hanwha Ocean representative.
