Under the deal revealed Friday, Hanwha Aerospace will secure 1.5 million tons of LNG annually for 20 years starting in 2030, supplying the fuel to end users across Europe and Asia. The volume represents about 4.4 percent of South Korea's total annual LNG consumption, based on 2024 figures of about 34.12 million tons.
The agreement is part of a broader push by the Hanwha Group to build an integrated LNG value chain, leveraging affiliates across the energy supply spectrum.
Hanwha Ocean brings shipbuilding and floating LNG production capabilities, Hanwha Energy handles LNG power generation and operations, and Hanwha Shipping oversees maritime transport.
Hanwha Aerospace said the move into LNG is designed to bolster its core defense and shipbuilding businesses as well as open new revenue streams.
Geopolitical tensions have ushered energy supply chains to become increasingly intertwined with national security strategies, particularly in Europe, where governments are seeking to diversify away from Russian gas.
The company plans to use its energy portfolio as leverage to deepen security partnerships with client nations and expand defense exports, while also driving LNG carrier orders for Hanwha Ocean.
"Defense, shipbuilding and energy are closely linked as pillars of national security," a Hanwha Aerospace spokesperson said. "We will contribute to global security through eco-friendly energy solutions spanning production, distribution and utilization."
Hanwha Aerospace has been steadily laying the groundwork for the venture, investing about 180 billion won ($125 million) in U.S. LNG firm NextDecade in 2024 and signing a memorandum of understanding with Hanwha Energy and Korea South-East Power in 2025 to expand global LNG supply networks.
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