Hanwha Aerospace is launching a subsidiary in the United States to oversee its liquefied natural gas (LNG) business, aiming to penetrate the global energy market. The strategy involves building a value chain that encompasses LNG procurement, transportation, supply, and power generation, thereby enhancing competitiveness in both energy and defense sectors.
On August 25, Hanwha Aerospace announced the establishment of 'Hanwha Horizon USA' to kickstart its global LNG operations.
Located in Texas, Hanwha Horizon USA will serve as the control tower for Hanwha Aerospace's LNG business, managing procurement, trading, and logistics optimization. James Sagar, CEO of Hanwha Shipping, who has over 30 years of experience in the marine and energy sectors, will also lead the new subsidiary.
Hanwha Aerospace plans to collaborate with Venture Global, which operates LNG production facilities in Louisiana, to establish a global supply chain. Earlier this year, the two companies signed a long-term contract to purchase 1.5 million tons of LNG annually for 20 years starting in 2030.
This supply chain will support a comprehensive LNG value chain from transportation to supply and power generation. Hanwha Horizon USA will supply fuel to the Hanwha Energy Yeosu LNG power plant, which is set to begin commercial operations in 2029, and will expand its customer base to domestic and international power companies and energy firms. In the long term, the company also aims to pursue LNG trading in global markets, including Asia.
Through its LNG business, Hanwha Aerospace intends to contribute to national energy security while strengthening U.S.-South Korea energy cooperation. The company envisions establishing an integrated security partnership that encompasses energy and defense based on a stable LNG supply chain.
In addition to its partnership with Venture Global, Hanwha Aerospace has signed a memorandum of understanding with Korea Southern Power to enhance global LNG cooperation and diversify its supply chain.
Recently, Hanwha Aerospace received an 'A-' credit rating from global credit rating agency Standard & Poor's, solidifying its financial foundation for expanding its LNG business.
A Hanwha Aerospace official stated, "The establishment of Hanwha Horizon USA marks a significant turning point in connecting our global LNG procurement capabilities with our shipbuilding and marine business competitiveness. We will build a stable LNG supply chain that can flexibly respond to market changes and continuously expand our differentiated LNG value chain in the global energy market."
* This article has been translated by AI.
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