Hanwha Aerospace to launch US entity for LNG business
Liquefied natural gas (LNG) carriers are anchored at Venture Global's LNG terminal in Louisiana, the United States in this photo provided by Hanwha Aerospace on Tuesday. Courtesy of Hanwha Aerospace
Korean defense firm Hanwha Aerospace said Tuesday it will establish a U.S. entity dedicated to its liquefied natural gas (LNG) business as part of its effort to strengthen its presence in the global energy supply chain.
Hanwha Horizon USA will serve as a control tower for the company's LNG operations, overseeing areas ranging from procurement to sales and trading to logistics. Hanwha Shipping CEO James Sagar will also head Hanwha Horizon USA.
The U.S. entity will initially secure LNG for Hanwha Energy's LNG power plant in the southern Korean city of Yeosu, scheduled to come online in 2029, the company said.
It also plans to supply LNG to other power plant operators and energy companies, and expand into LNG trading across Asia and other global markets.
Hanwha Aerospace said the LNG initiative is part of broader efforts to enhance Korea's energy security and strengthen energy cooperation between Korea and the United States.
"The launch of Hanwha Horizon USA is a turning point that connects our global LNG procurement capabilities with our shipbuilding and maritime businesses," Sagar said in a release. "We will build a stable LNG supply chain that can respond flexibly to market changes and continue to grow a distinctive LNG value chain in the global energy market."
Hanwha Aerospace has already taken steps to secure LNG supplies by signing a purchase agreement with Venture Global, a major U.S. LNG producer.
The company has also signed a memorandum of understanding with state-run Korea Southern Power Co. to jointly strengthen LNG procurement and diversify supply sources.