Hanwha Group is taking the lead in importing and selling U.S. liquefied natural gas, an effort aimed at cementing its defense and shipbuilding businesses in the U.S. market.
Hanwha Aerospace (012450) said on the 25th that it has established Hanwha Horizon USA in the United States and is launching a full-scale global LNG business. The new entity will serve as the control tower for Hanwha Aerospace's LNG operations, handling everything from securing volumes to trading and logistics optimization. James Sagar, chief executive of Hanwha Shipping, will also head Hanwha Horizon USA.
Hanwha Horizon USA will first supply U.S. LNG as fuel to Hanwha Energy's Yeosu LNG power plant, which begins commercial operation in 2029. It then plans to expand LNG supply to power producers and energy companies at home and abroad. Over the medium to long term, the company also plans to build out an LNG trading business in Asia and other global markets.
Expanding U.S. LNG exports is a key priority for the Donald Trump administration. South Korea has also faced growing pressure to increase U.S. LNG purchases as the closure of the Strait of Hormuz following the war between the United States and Iran has dragged on. As of last month, U.S. LNG accounted for 26.5% of South Korea's imports, ranking second behind Australia at 28.7%.
Hanwha's new LNG venture is expected to strengthen domestic energy security while serving as leverage to expand the group's business in the United States. "The establishment of Hanwha Horizon USA is an important turning point that connects our global LNG sourcing capabilities with the competitiveness of our shipbuilding and offshore businesses," Hanwha Aerospace said. "We will build a stable LNG supply chain that can respond flexibly to market changes."
Hanwha Aerospace has signed an LNG purchase agreement with Venture Global, a leading U.S. LNG producer, and has also concluded an agreement with Korea Southern Power to build a "Team Korea" framework for strengthening global LNG cooperation, laying the groundwork for expanded LNG sourcing and distribution.
