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 is aimed at fostering local industrial cooperation and advancing into the North American energy market as a strategic move to strengthen its bid for Canada's next-generation submarine program (CPSP).

On June 16 (local time), Hanwha Ocean announced on June 18 that it had signed an MOU with Kanata, a Canadian energy development company, 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 Recently, the United States has been focusing on Korea as a strategic partner to rebuild its outdated shipbuilding industry.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 project with an annual capacity of up to 12 million tons. The total project cost is expected to reach approximately $15.7 billion (about 24 trillion won). Through this MOU, Hanwha Ocean and Kanata will explore cooperation in a wide range of technical and commercial areas, including operation and maintenance (O&M) of the facilities, strategic equity participation by Hanwha Ocean or its affiliates, long-term LNG purchase agreements, and midstream solutions such as liquefied natural gas carriers (LNGCs).

This partnership goes beyond a conventional offshore plant business and is closely linked to Hanwha Ocean's participation in the CPSP bidding process. The Canadian government applies very strict evaluations regarding ‘industrial and technological benefits’ within the country for large-scale defense projects. By participating in the Kanata LNG project, Hanwha Ocean has demonstrated its commitment to contributing to the development of local energy infrastructure in Canada.

The decisive moment in the CPSP bidding process is just over a month away. On June 13, Stephen Fuhr, Secretary of State for Defence Procurement of Canada, mentioned in an interview held in Berlin, Germany, that “a preferred bidder is expected to be selected within a month.”

Philippe Levy, Head of Offshore Business at Hanwha Ocean, said, “Canada possesses world-class natural gas resources and tremendous potential to reliably supply LNG to the Asia-Pacific market. Through this strategic relationship with Kanata, we hope that Hanwha Ocean’s FLNG and offshore engineering capabilities will contribute to the success of the project.”

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