Hanwha Aerospace to launch U.S. entity for LNG business

South Korean defense company Hanwha Aerospace Co. announced on Tuesday its plans to establish a U.S. entity focused on its liquefied natural gas (LNG) business, as part of its strategy to bolster its position in the global energy supply chain. The new company, Hanwha Horizon USA, will oversee all aspects of Hanwha's LNG operations, including procurement, sales, trading, and logistics. James Sagar, CEO of Hanwha Shipping, will take up the helm of Hanwha Horizon USA.

Initially, the U.S. entity will focus on procuring LNG for Hanwha Energy Co.'s LNG power plant in the southern city of Yeosu, set to commence operations in 2029. Additionally, the company intends to supply LNG to other power plant operators and energy firms, as well as venture into LNG trading across Asia and other global markets. Hanwha Aerospace views the creation of Hanwha Horizon USA as a significant step in enhancing South Korea's energy security and strengthening energy collaboration between the two nations.

Sagar expressed his optimism about the launch, stating that it bridges the company's global LNG procurement capabilities with its shipbuilding and maritime businesses. The goal is to create a reliable LNG supply chain capable of adapting to market fluctuations while expanding a unique LNG value chain in the international energy market.

Hanwha Aerospace has already demonstrated its commitment by signing a purchase agreement with Venture Global, a prominent U.S. LNG producer, and a memorandum of understanding with Korea Southern Power Co. to jointly bolster LNG procurement and diversify supply sources.