Hanwha Aerospace (012450.KS) said on the 25th that it has established a U.S. entity, Hanwha Horizon USA, and is making a full-scale entry into the global liquefied natural gas (LNG) business.
Hanwha Horizon USA will serve as the control tower for Hanwha Aerospace's LNG business, handling procurement, trading and logistics optimization. The unit will be led by James Sagar, chief executive of Hanwha Shipping, who has more than 30 years of experience in the maritime and energy sectors and will hold the two positions concurrently.
Hanwha Aerospace's strategy is to build an LNG value chain spanning transport, supply and power generation, centered on Hanwha Horizon USA, to strengthen its global competitiveness. Hanwha Horizon USA plans to supply fuel to Hanwha Energy's Yeosu LNG power plant, which begins commercial operation in 2029, and to expand LNG supply to domestic and overseas power companies and energy firms. Over the medium to long term, it will also ramp up LNG trading in Asia and other global markets.
Hanwha Aerospace's LNG business is also part of Korea's contribution to energy security and its efforts to strengthen Korea-U.S. energy security cooperation amid rapidly shifting global conditions. A stable LNG supply chain is expected to enable integrated security partnerships spanning energy and defense with client nations.
Hanwha Aerospace has secured a stable supply base by signing an LNG purchase agreement with Venture Global, a leading U.S. LNG producer. It has also signed a memorandum of understanding with Korea Southern Power to build a "Team Korea" for stronger global LNG cooperation, pursuing greater competitiveness in LNG procurement and diversification of its supply chain. It recently obtained an A- credit rating from Standard & Poor's, securing the financial strength to expand its LNG business.
A Hanwha Aerospace official said the establishment of Hanwha Horizon USA marks "an important turning point that connects our global LNG procurement capabilities with our competitiveness in shipbuilding and marine businesses." The official added, "We will build a stable LNG supply chain that can respond flexibly to market changes, and continue to expand a differentiated LNG value chain in the global energy market."
