Hanwha Enters LNG Business Amid Global Demand Growth

South Korean conglomerate Hanwha is entering the liquefied natural gas (LNG) business to meet growing global demand for LNG power generation, particularly from artificial intelligence data centers. This move comes as multiple corporations in South Korea are expanding their LNG businesses due to rising electricity demand.

Hanwha's aerospace and defense affiliate Hanwha Aerospace has established Hanwha Horizon USA in the United States to serve as a control tower for its LNG business, focusing on procurement and trading of LNG. The fuel will be supplied from the United States to Hanwha Energy's Yeosu LNG power plant, set to begin commercial operation in 2029.

Conglomerates like SK Group, GS Group, and POSCO Group are already operating in the LNG business, with SK Innovation E&S being the most aggressive player. It has participated in the development of the Barossa gas field in Australia and operates several power plants that use LNG as fuel.