Hanwha Aerospace, Hanwha Energy, and Korea Southern Power Forge Alliance to Strengthen Global LNG Value Chain
Hanwha Aerospace has signed a memorandum of understanding (MoU) with Hanwha Energy and Korea Southern Power (KOSPO) to deepen cooperation in the global liquefied natural gas (LNG) sector. The agreement underscores South Korea’s growing emphasis on securing energy stability and establishing a resilient LNG value chain amid global market volatility and geopolitical uncertainty.
The signing ceremony took place at The Plaza Hotel in Seoul, symbolizing the beginning of a new public–private partnership designed to enhance Korea’s LNG procurement capabilities and diversify energy supply sources. With global energy security increasingly at risk due to ongoing geopolitical conflicts and shifts in global trade patterns, the three partners intend to work closely to build a sustainable framework for LNG imports, distribution, and consumption.
Building a Stronger LNG Procurement Framework
Under the MoU, Hanwha Aerospace, Hanwha Energy, and Korea Southern Power will collaborate on the joint procurement of U.S. LNG supplies. By pooling resources and expertise, the three companies aim to negotiate more competitive terms in international markets, thereby improving Korea’s access to reliable and cost-effective LNG imports.
The cooperation also includes the use of LNG swaps—agreements to exchange cargoes between different buyers and sellers—to strengthen domestic energy supply stability. This mechanism allows for greater flexibility in responding to sudden demand surges, disruptions in shipping lanes, or regional imbalances in LNG availability.
Additionally, the three parties will establish a platform for information sharing to improve market intelligence. By monitoring global LNG pricing trends, shipping availability, and regional supply-demand fluctuations, the partners expect to sharpen their competitiveness in the highly dynamic LNG sector.
Leveraging Hanwha’s LNG Capabilities
A key component of the agreement is the integration of Hanwha Group’s LNG infrastructure into the collaboration. Hanwha Aerospace and Hanwha Energy will utilize Hanwha Ocean’s advanced LNG carrier fleet to support transportation and delivery operations. This integration is designed to form a complete LNG value chain, spanning procurement, shipping, storage, and domestic distribution.
The partnership will not only secure reliable energy supply for Korea but also create potential for new business opportunities. By streamlining operations across Hanwha’s subsidiaries, the group expects to generate synergies, strengthen its order potential in the LNG shipping market, and build a foundation for long-term growth in the global energy sector.
Hanwha’s commitment to LNG development has already been demonstrated through its international investments. In 2024, Hanwha Aerospace invested approximately KRW 180.3 billion (USD 130.3 million) to acquire a 6.83% stake in U.S.-based LNG developer NextDecade Corporation. This move expanded the company’s presence in North America, one of the most critical LNG hubs in the world, and reinforced its strategic focus on building a global LNG portfolio.
Leadership Perspectives
Executives from the three companies emphasized the broader significance of the partnership during the signing ceremony.
“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.”
Jae Kyu Lee, CEO of Hanwha Energy, highlighted the strategic benefits of combining private and public sector expertise: “Through this agreement, we will bring together the capabilities of the private and public sectors to respond to the changing global LNG market. We expect LNG imports and swaps to strengthen both the stability and flexibility of our partnership.”
Jun-Dong Kim, CEO of Korea Southern Power, noted the importance of enhancing LNG import competitiveness in light of global instability: “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. I hope this agreement will serve as a cornerstone for practical cooperation, such as joint procurement of U.S. LNG, that will contribute to the national economy.”
Hanwha Aerospace: Expanding Beyond Aerospace
Founded in 1977, Hanwha Aerospace has grown into a leading global provider of advanced technologies and integrated solutions. While the company first established itself as a prominent force in the aerospace industry, its portfolio has since expanded into defense, marine, and now energy infrastructure.
The company’s customer-centric approach, commitment to quality management, and investment in advanced technologies have allowed it to compete at a world-class level. With a growing footprint in space systems, land and sea defense solutions, and energy logistics, Hanwha Aerospace is positioning itself as a multi-industry leader at the intersection of technology and energy security.
Toward a Resilient Energy Future
The MoU between Hanwha Aerospace, Hanwha Energy, and Korea Southern Power represents more than just a business agreement. It reflects South Korea’s broader strategy to mitigate energy vulnerabilities and diversify its energy supply chain in response to global challenges.
As the LNG sector continues to play a central role in the world’s energy transition, partnerships like this are expected to create resilient systems that can withstand supply shocks while supporting sustainable economic development. With private and public entities aligning their expertise, Korea is positioning itself as a forward-looking player in the global LNG market—ensuring that energy security remains a cornerstone of national resilience.
