Hanwha Ocean Signs Canada FLNG Project MOU... One Month Left Until Submarine Bid Decision

MOU Signed for Kanata Project
Commitment to Advancing Local Energy Infrastructure
Exploring Collaboration in Operation and Maintenance of Facilities

Hanwha Ocean has signed a memorandum of understanding (MOU) with Canadian energy company Kanata for a large-scale floating liquefied natural gas (FLNG) project. This investment aims to foster local industrial cooperation and expand into the North American energy market, serving as a strategic move ahead of the bidding war for Canada’s next-generation submarine project (CPSP).

On June 16 (local time), Hanwha Ocean announced on June 18 that it had signed an MOU with Kanata, a Canadian energy developer, to jointly develop the “Kanata LNG” project in the Prince Rupert area of British Columbia, Canada.

In the yard dock of Hanwha Ocean Okpo Shipyard in Geoje, Gyeongnam, liquefied natural gas (LNG) carriers are brightly lit as construction work continues. Recently, the United States has been focusing on Korea as a strategic partner to rebuild its outdated shipbuilding industry. According to the shipbuilding industry revitalization policy strongly promoted by the Trump Administration, the United States is expected to order up to 448 vessels by 2037, including merchant ships, liquefied natural gas (LNG) carriers, and naval warships. Photo by Kang Jinhyung

The Kanata LNG project is an FLNG export initiative with an annual capacity of up to 12 million tons. The total expected project cost is approximately $15.7 billion (about KRW 2.1 trillion). Through this MOU, Hanwha Ocean and Kanata will explore collaboration across a broad range of technical and commercial areas, including: operation and maintenance (O&M) of facilities; Hanwha Ocean or its affiliates’ potential strategic equity participation; long-term LNG purchase agreements; and midstream solutions such as liquefied natural gas carriers (LNGCs).

This cooperation goes beyond a simple offshore plant business, and is closely tied to Hanwha Ocean’s participation in the CPSP tender. The Canadian government enforces very strict evaluations of “industrial and technological benefits” for major defense projects. By participating in the Kanata LNG project, Hanwha Ocean is demonstrating its commitment to contributing to the development of Canada’s local energy infrastructure.

The decisive moment in the CPSP bidding competition is now about a month away. On June 13, Stephen Fuhr, Secretary of State for Defence Procurement of Canada, said in an interview conducted in Berlin, Germany, that a preferred bidder is expected to be selected within a month.

Philippe Levy, President of Hanwha Ocean’s Offshore Business Division, stated, “Canada possesses world-class natural gas resources and the potential to stably supply LNG to the Asia-Pacific market. Through this strategic partnership with Kanata, we hope Hanwha Ocean’s FLNG and offshore engineering capabilities can contribute to the success of the project.”

This content was produced with the assistance of AI translation services.