With an integrated supply chain in mind, Hanwha Aerospace, a subsidiary of South Korean conglomerate Hanwha Group, has joined forces with Hanwha Energy and Korea Southern Power to bolster cooperation in the global liquefied natural gas (LNG) sector and means of obtaining U.S. LNG to boost Korea’s energy security.
Thanks to a signed memorandum of understanding (MoU), the three companies aim to advance the development of an integrated LNG value chain, marking the start of a new public–private collaboration to secure competitive LNG procurement and diversify supply sources.
Jaeil Son , President and CEO of Hanwha Aerospace, commented: “We will extend the technology and global networks we have built in the defense sector into the energy field to contribute to national energy security. Based on our cooperation with Korea Southern Power, we will expand projects that strengthen Korea’s energy stability and support economic growth.”
According to Hanwha, this agreement has been designed to strengthen Korea’s access to U.S. LNG in a more favorable trading environment, addressing the need for stable energy supply chains amid heightened geopolitical risks and global market uncertainty.
To this end, the Asian players intend to collaborate on joint procurement of U.S. LNG, enhance domestic supply stability through LNG swaps, and expand information sharing in the global LNG market.
As a result, Hanwha Aerospace and Hanwha Energy will leverage Hanwha Ocean’s LNG carrier fleet to create an integrated LNG value chain – from sourcing to transportation and delivery – to enhance order potential and generate synergies across Hanwha Group.
Jae Kyu Lee , CEO of Hanwha Energy, noted: “Through this agreement, we will bring together the capabilities of the private and public sectors to respond to the changing global LNG market. We expect LNG imports and swaps to strengthen both the stability and flexibility of our partnership.”
These companies invested approximately KRW 180.3 billion ($130.3 million) last year to secure a 6.83% stake in NextDecade Corporation, a U.S. LNG developer, further expanding their presence in the North American LNG sector.
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“Amid recent geopolitical risks such as conflicts in the Middle East and changes in the external environment, enhancing competitiveness in direct LNG imports through collaboration with the private sector is highly meaningful,” highlighted Jun-Dong Kim , CEO of Korea Southern Power.
“I hope this agreement will serve as a cornerstone for practical cooperation, such as joint procurement of U.S. LNG, that will contribute to the national economy.”
This MoU comes a few months after Hanwha Drilling, part of Hanwha Ocean, named a seventh-generation drillship destined to embark on a drilling campaign for Petrobras in Brazilian waters.