South Korean shipbuilder Hanwha Ocean has announced that it will build two liquefied natural gas (LNG) carriers for its newly formed subsidiary Hanwha Shipping LLC.
On February 10, Hanwha Ocean announced the order for the two LNG carriers, with the new vessels scheduled for delivery in the second half of 2027. The total contract value is about $504 million, and the buyer is affiliate Hanwha Shipping. Hanwha Ocean did not disclose the specifications of the new vessels, but shipbrokers said the new vessels have a capacity of 174,000 cubic meters, based on a price of $252 million each.
Hanwha Shipping was established in April 2024 with the aim of becoming an operating platform for green and digital ship technology. According to shipbroking sources, the subsidiary’s main business will be on shipowning.
Unlike traditional shipping companies that generate revenue through the operation of vessels, Hanwha Shipping will focus on playing the role of a “laboratory” that serves as a validation platform for Hanwha Ocean’s green and digital ship technologies. By operating vessels equipped with the green and digital technologies being developed by Hanwha Ocean, Hanwha Shipping will be able to directly validate the utility and stability of Hanwha Ocean-built vessels.
Through the establishment of Hanwha Shipping, Hanwha Ocean not only plans to build zero-carbon and digital ships, but also intends to conduct demonstration projects. The company aims to take a leading position in the global shipping market by actively developing green technologies in line with the decarbonization trend.
At the end of January 2025, Korean media reports indicated that Hanwha Ocean achieved its first profit in 2024 since 2020. The group’s merchant marine division has seen a significant recovery due to increased demand for high value-added vessels, such as LNG carriers.