It’s possible that I shall make an ass of myself. But in that case one can always get out of it with a little dialectic. I have, of course, so worded my proposition as to be right either way (K.Marx, Letter to F.Engels on the Indian Mutiny)
Tuesday, July 22, 2025
LNG Carrier to be Jointly Built by Hanwha Geoje and Hanwha Philly
[Correction: Initial reports of this order suggested that the vessel would be built at Hanwha Philly. This is incorrect: It will be ordered from the Hanwha Phillly legal entity, then substantially built in Korea by Hanwha Geoje, then sailed to Hanwha Philly for "joint build" production.]
A Hanwha Group subsidiary has purchased a LNG carrier from Hanwha's shipbuilding subsidiaries, and the U.S. Coast Guard certification work will be performed at the conglomerate's American shipyard, the recently-acquired Hanwha Philly. The exact scope of work for Hanwha Philly is still under discussion, a spokesperson for the yard said.
"This project aligns with the U.S. government's strategy to revitalize its shipbuilding and shipping industries while strengthening energy security," Hanwha Ocean told Yonhap.
Ryan Lynch, the CEO of Hanwha Shipping, told Bloomberg that the price would be about $250 million - in line with the typical purchase price for a 174,000cbm LNG carrier at a Korean shipyard.
Korea's Big Three shipbuilders - including Hanwha - are world leaders in LNG carrier construction. Hanwha said that a significant part of the vessel will be built at the Hanwha Geoje plant in Korea, and that "Hanwha Philly Shipyard plans to support certification work to meet U.S. laws and maritime safety standards of the United States Coast Guard (USCG)."
The news follows last month's reports that Hanwha is planning to reflag Korean-made LNG carriers into the U.S.-flag fleet, making use of the Alternative Compliance Program (ACP), the Coast Guard's inspection and certification agreement with certain class societies.
Reflagged Korean vessels would not be Jones Act-compatible, as they would not be U.S. built. There is a narrow exemption for LNG carriers trading to Puerto Rico, but very few hulls qualify. According to Business Korea, Hanwha is simultaneously watching the U.S. domestic debate over Jones Act reform, which - if acted upon - could allow broader use of less-expensive Korean hulls in U.S. domestic trade.
Hanwha has been moving fast to expand its position in American shipbuilding with the acquisition and upgrading of Hanwha Philly. It has hired hundreds of new people and has a training pipeline of 170 apprentices; with "smart yard technology," like advanced welding robots, Hanwha thinks it can increase production to 10 ships a year - up from the current rate of 1.5.
In addition to its commercial shipbuilding ambitions, Hanwha wants to win U.S. Navy contracts, including newbuild auxiliaries. Some of those orders could also go abroad, Hanwha acknowledges.
"U.S. support shipbuilding capability has weakened and fallen behind schedule, so the U.S. is considering placing orders with foreign shipyards if support ships [naval auxiliaries] can be built quickly," Hanwha Philly Shipyard chief Lee Jong-Moo told The Korea Times.
In the 2010s, Hanwha's predecessor company DSME won a bid to sell four oilers to the UK Royal Fleet Auxiliary for a favorable price; the Korean builder partnered with a British yard to complete the fitting-out process to ensure UK domestic content.
MARAD Announces $8.75 Million in Grants to Revitalize U.S. Shipyards
The Small Shipyard Grant Program selected 17 recipients across 12 states to modernize infrastructure, enhance training, & expand apprenticeship programs
U.S. Transportation Secretary Sean P. Duffy today announced the Maritime Administration (MARAD) awarded $8.75 million in grants to revitalize U.S. shipyards and advance America’s maritime dominance. The funding is part of the Small Shipyard Grant program, which supports advanced training, workforce development, and new technologies that strengthen U.S. shipbuilding and repair capabilities.
“President Trump’s plan to reclaim maritime dominance starts with rebuilding America’s shipyards,” said U.S. Transportation Secretary Sean P. Duffy. “This program will help America to build big, beautiful ships again to counter Chinese competition and maintain freedom on the seas.”
“Unleashing the full power of America's shipyards will boost our economic strength and national security,” said Acting Maritime Administrator Sang Yi. “The Small Shipyard Grant program is revitalizing America’s maritime industry by investing in businesses that spur innovation, improve productivity, and fuel job creation in communities around the country.”
Since its inception in 2008, the Small Shipyard Grant program has awarded 382 grants totaling $320.5 million to qualified small shipyard facilities. 17 recipients in 12 states were awarded funds as part of this announcement.
Additional Information:
America’s small shipyards are a strategic asset and are critical to national security and economic vitality. Employing more than 100,000 Americans, these shipyards are fundamental engines of local job growth and have unique capabilities, from custom vessel development to specialized repair services. Through President Trump’s Executive Order on restoring America’s maritime dominance, shipyards are positioned to enhance defense, grow manufacturing, and expand innovation and the maritime workforce.
Below is a complete list of shipyard grant recipients in Fiscal Year 2025:
Alabama
Master Boat Builders of Bayou La Bâtre, AL, will receive $427,596.38 to support the procurement and integration of training equipment and technologies.
Alaska
Resolve Marine, Inc., of Dutch Harbor, AK, will receive $447,341.00 to support the purchase of a Caterpillar 980 Wheel Loader.
California
Marine Group Boat Works, LLC of Chula Vista, CA, will receive $248,402.50 to support the purchase of a Flow Mach 500 Waterjet Metal Cutting Table.
Bay Ship & Yacht Co. of Alameda, CA, will receive $388,777.00 to support the purchase of a CNC plasma arc and gas cutting equipment.
Florida
Eastern Shipbuilding Group, Inc., of Panama City, FL, will receive $93,537.75 to support the purchase of a 10-foot plate shear.
St. Johns Ship Building, Inc., of Palatka, FL, will receive $617,040.00 to support the purchase of a Grove GRT8100 110-ton Rough Terrain Crane.
Kentucky
JamesBuilt, LLC of Calvert City, KY, will receive $599,130.00 to support the purchase of a 65-ton rough terrain crane.
Louisiana
Breaux’s Bay Craft, Inc., of New Iberia, LA, will receive $817,150.00 to support the purchase of a 200-ton Marine Travelift.
PAR61 Marine Repair of Port Allen, LA, will receive $723,242.00 to support Travelift infrastructure improvements, three new power distribution panels, a Telehandler, and a Crane Apron.
Maryland
Chesapeake Shipbuilding Corp., of Salisbury MD, will receive $817,150.00 to support the purchase of a 160-ton rough terrain mobile crane.
Pennsylvania
Heartland Fabrication, LLC of Brownsville, PA, will receive $588,092.00 to support the purchase of a Koike Aronson PlatePro XHD Model 3700 Plasma cutting machine.
Rhode Island
J. Goodison Company of North Kingston, RI, will receive $274,596.00 to support the purchase of welding equipment and a press brake.
Texas
Conrad Orange Shipyard, Inc., of Orange, TX, will receive $418,200.50 to support the purchase of a CNC plasma cutting system.
Washington
Ice Floe, LLC dba Nichols Brothers Boat Builders of Freeland, WA, will receive $357,317.00 to support the purchase of a CNC Router Table, CNC Laser Table, Dust Collector, Dehumidifier, and 15 multi-process welders with wire feeds.
Snow & Company, Inc. of Seattle, WA, will receive $817,150.00 to support the purchase of a CNC Press Brake with segmented dies and Deburring Machine.
Lake Union Drydock Company of Seattle, WA, will receive $298,131.64 to support the purchase of a 9-ton Mobile Crane, 4-pack of weld machines, plate cutter, and drydock LED lighting.
Wisconsin
Fraser Shipyards, LLC of Superior, WI, will receive $817,146.23 to support the purchase of Link Belt 130-ton Telescopic Boom Rough Terrain Crane
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