Hanwha Aerospace has signed a memorandum of understanding with Hanwha Energy and Korea Southern Power to strengthen cooperation in the global liquefied natural gas (LNG) sector and develop an integrated LNG value chain, according to the company's release.
The MoU aims to initiate a public–private collaboration to secure competitive LNG procurement and diversify supply sources. It also seeks to improve Korea’s access to U.S. LNG in a more favorable trading environment, while responding to the need for stable energy supply chains amid ongoing geopolitical risks and global market uncertainties.
According to the agreement, the three companies will cooperate on joint procurement of U.S. LNG, improve domestic supply stability through LNG swaps, and increase information sharing in the global LNG market. Hanwha Aerospace and Hanwha Energy will utilize Hanwha Ocean’s LNG carrier fleet to form a fully integrated LNG value chain covering sourcing, transportation, and delivery, with the goal of enhancing order volume and creating synergies within Hanwha Group.
In 2024, Hanwha Aerospace invested approximately KRW 180.3 billion (USD 130.3 million) to acquire a 6.83% stake in U.S. LNG developer NextDecade Corporation as part of its strategy to expand in the North American LNG sector.
“We will extend the technology and global networks we have built in the defense sector into the energy field to contribute to national energy security,” said Jaeil Son, President and CEO of Hanwha Aerospace. “Based on our cooperation with Korea Southern Power, we will expand projects that strengthen Korea’s energy stability and support economic growth.”
“Through this agreement, we will bring together the capabilities of the private and public sectors to respond to the changing global LNG market,” said Jae Kyu Lee, CEO of Hanwha Energy. “We expect LNG imports and swaps to strengthen both the stability and flexibility of our partnership.”
“Amid recent geopolitical risks such as conflicts in the Middle East and changes in the external environment, enhancing competitiveness in direct LNG imports through collaboration with the private sector is highly meaningful,” said Jun-Dong Kim, CEO of Korea Southern Power.
Hanwha Aerospace Co., Ltd. is a publicly listed South Korean corporation headquartered in Changwon, South Korea. Originally established as Samsung Precision in 1977, the company was renamed Hanwha Aerospace after its acquisition by Hanwha Group.
Hanwha Energy Corporation is a South Korean limited liability company and a wholly owned subsidiary of Hanwha Group. The company operates in the power generation sector, with business interests in thermal, solar, and renewable energy projects.
Korea Southern Power Co., Ltd. is a wholly owned subsidiary of Korea Electric Power Corporation (KEPCO), a state-owned enterprise under the jurisdiction of South Korea’s Ministry of Trade, Industry and Energy.