Hanwha Aerospace (012450) is entering the global liquefied natural gas (LNG) trading business for the first time.
The company announced on the 27th that it has signed a long-term purchase agreement with U.S. LNG producer Venture Global. Under the deal, Hanwha Aerospace will secure 1.5 million tons of LNG annually for 20 years starting in 2030, with plans to supply markets in Europe and Asia. The volume represents approximately 4.4% of South Korea's annual LNG consumption (about 34.12 million tons as of 2024).
Hanwha Group is building a "global LNG value chain" by consolidating capabilities across its affiliates. Hanwha Ocean possesses expertise in LNG carrier construction and offshore infrastructure including floating LNG production facilities (FLNG). Hanwha Energy maintains LNG power generation and operational capabilities. Hanwha Shipping handles stable maritime LNG transportation.
Through its entry into LNG trading, Hanwha Aerospace plans to strengthen energy security capabilities while enhancing global competitiveness in its core defense and shipbuilding businesses.
The company has been systematically building its LNG business foundation. In 2024, it invested approximately 180 billion won in U.S. LNG company NextDecade. Last year, it signed a memorandum of understanding with Hanwha Energy and Korea Southern Power to expand global LNG supply chains.
As major countries including those in Europe have adopted stable LNG procurement as a core security strategy, Hanwha Aerospace aims to expand defense exports and strengthen security partnerships with client nations through its LNG business. The move is also expected to boost LNG carrier orders for Hanwha Ocean.
A Hanwha Aerospace official stated, "Defense, shipbuilding, and energy industries are highly interconnected as core elements of national security." The official added, "We will contribute to global security through eco-friendly energy solutions encompassing energy production, distribution, and utilization."
