Seoul: South Korean defense firm Hanwha Aerospace Co. announced plans to establish a U.S.-based entity focused on its liquefied natural gas (LNG) business, aiming to bolster its role in the global energy supply chain.

According to Yonhap News Agency, the new entity, Hanwha Horizon USA, will function as a central hub for Hanwha's LNG operations, managing activities such as procurement, sales, trading, and logistics. James Sagar, CEO of Hanwha Shipping, will lead Hanwha Horizon USA.

Initially, the U.S. entity will secure LNG for Hanwha Energy Co.'s LNG power plant in Yeosu, South Korea, which is expected to begin operations in 2029. The company also intends to supply LNG to other power plant operators and energy firms, with plans to expand its LNG trading activities across Asia and other global markets.

Hanwha Aerospace stated that this LNG initiative is part of its larger strategy to improve South Korea's energy security and enhance energy collaboration between South Korea and the United States.

James Sagar noted in a release that Hanwha Horizon USA marks a significant step in connecting global LNG procurement capabilities with Hanwha's shipbuilding and maritime businesses. He emphasized the aim to establish a stable LNG supply chain that adapts to market changes and supports the growth of a unique LNG value chain in the global market.

The company has already made progress in securing LNG supplies by signing a purchase agreement with Venture Global, a prominent U.S. LNG producer. Additionally, Hanwha Aerospace has entered a memorandum of understanding with Korea Southern Power Co. to jointly enhance LNG procurement and diversify supply sources.