Hanwha Aerospace announced on Tuesday that it has established a U.S. subsidiary, Hanwha Horizon USA, marking its official entry into the global liquefied natural gas (LNG) market.
Hanwha Horizon USA will serve as the control tower for Hanwha Aerospace’s LNG operations, managing procurement, trading, and logistics optimization. James Sagar, Chief Executive Officer (CEO) of Hanwha Shipping, who brings over three decades of experience in the marine and energy sectors, will also lead this new venture.
Through Hanwha Horizon USA, Hanwha Aerospace aims to build a comprehensive LNG value chain encompassing transportation, supply, and power generation, bolstering its global competitiveness.
The new subsidiary plans to supply fuel to Hanwha Energy’s Yeosu LNG power plant, set to begin commercial operations in 2029. It also aims to expand LNG supplies to domestic and international power companies and energy firms. In the long run, Hanwha Horizon USA will ramp up its LNG trading operations in global markets, with a focus on Asia.
Hanwha Aerospace has secured a stable supply base by inking an LNG purchase agreement with Venture Global, a leading U.S. LNG producer. The company has also partnered with Korea Southern Power, signing a memorandum of understanding to form Team Korea, aimed at enhancing LNG procurement competitiveness and diversifying supply chains.
Recently, Hanwha Aerospace received an A- credit rating from Standard & Poor’s (S&P), further solidifying its financial position for LNG business expansion.
A Hanwha Aerospace spokesperson stated that the establishment of this subsidiary marks a pivotal moment in merging the global LNG procurement capabilities with the shipbuilding and marine expertise. It’s committed to expanding the unique LNG value chain in the global energy market.
In related news, Hanwha Aerospace reported a record-breaking second-quarter consolidated operating profit of 1.3655 trillion KRW (about 988 million USD), up 58.5% from the same period last year. This marks the first time the company’s quarterly operating profit has surpassed the 1 trillion KRW (about 723 million USD) milestone.