South Korea‘s Hanwha Shipping has placed an order for the first US-built LNG carrier in nearly five decades, awarding the contract to its affiliate, US-based Hanwha Philly Shipyard.

The vessel will be constructed under a joint-build model with Korea’s Hanwha Ocean, leveraging advanced LNG technology and US regulatory compliance, it said in a statement on its website on Wednesday. 

The deal includes a firm order and an option for a second ship, with plans to transfer LNG shipbuilding capabilities to the US shipyard gradually.

While major components will be fabricated in Korea, Hanwha Philly Shipyard will oversee US standards and safety certifications, laying the foundation for high-value domestic shipbuilding.

“The vessel will be constructed with advanced technology and propulsion systems, and will be the first US-ordered, export-market-viable LNG carrier in almost 50 years, dating back to the late 1970s,” Hanwha said.

The order follows new US trade policies requiring an increasing share of LNG exports to be transported on US-built, US-crewed ships.

Hanwha acquired Philly Shipyard in late 2023 and is investing in workforce training and smart shipbuilding systems to expand its US maritime footprint.