(PHILADELPHIA) — Hanwha Shipping, a U.S. subsidiary of Hanwha Ocean, has ordered 10 medium-range (MR) oil and chemical tankers from its affiliate, Hanwha Philly Shipyard, with the first tanker expected to be delivered by early 2029. Not only is this the largest U.S. commercial vessel order in more than 20 years, but it is also the highest-value commercial order seen at U.S. shipyards.
Hanwha Shipping also exercised an option to order a second liquefied natural gas (LNG) carrier, providing a key element in the U.S. expansion of LNG exports. This milestone doubles the U.S. orderbook for LNG carriers to the highest level since the 1970s. It follows Hanwha Shipping’s announcement last month that it signed a contract for the first U.S.-ordered, export-market-viable LNG carrier in almost 50 years.
The MR vessels will be fitted to transport crude oil, refined petroleum and chemical products. This will significantly expand the U.S. Jones Act fleet of U.S.-built, U.S.-owned, and U.S.-crewed vessels operating between U.S. ports. The new vessels will mark a significant addition to the U.S. defense industrial supply chain and help drive the capability of U.S. businesses to reach foreign export markets.
“We are able to order these U.S.-made MR tankers because of Hanwha’s investment in building a world-class shipyard in Philadelphia,” said Ryan Lynch, president and CEO of Houston-based Hanwha Shipping. “Hanwha has made a long-term commitment to bringing cutting-edge technology from Korea to the Hanwha Philly Shipyard that will create thousands of good, advanced manufacturing jobs in the United States and spearhead the revitalization of America’s maritime industrial base.”
As the only company in the world with significant shipbuilding operations in both Korea and the U.S., Hanwha plans to build next-generation MR tankers in the U.S. by transferring its advanced shipbuilding technologies, processes and supply chains to Hanwha Philly Shipyard, enabling the latter to expand into globally competitive, next-generation shipbuilding.
The two LNG carriers will be used to export U.S.-sourced LNG to U.S. trading partners and allies, thus creating high-value work for American shipbuilders and proving that U.S. shipyards can once again compete in global export markets. They will be built via a joint construction model between Hanwha Ocean and Hanwha Philly Shipyard as part of the U.S.-Korea partnership.
Hanwha Shipping plans to use these vessels as a strategic platform to support energy security for the U.S. and its allies, reinforce American leadership in global energy logistics, and reindustrialize America’s maritime sector. By leveraging modern shipbuilding techniques, Hanwha aims to offer a reliable, cost-effective solution to rising global energy demand – particularly amid heightened geopolitical tensions and increasing pressure on energy supply chains.
Last December, global conglomerate Hanwha acquired Philly Shipyard for $100 million. With the acquisition, Hanwha is focused on revitalizing Hanwha Philly Shipyard as part of its wider goal of increasing U.S. maritime capacity and the U.S. maritime industrial base. Drawing on its decades of shipbuilding expertise and know-how, Hanwha is making significant investments in expanding its Philadelphia shipyard’s capabilities with technological advancements, workforce training and smart systems.
– Hanwha Shipping
