The two firms announced the memorandum in a joint statement on Tuesday.
Under the terms of the MuU, Hanwha Ocean and Kanata intend to explore potential opportunities for cooperation across several technical and commercial areas, including engineering and construction of floating LNG production and related facilities, and operations and maintenance services over the facilities’ operating life.
The memorandum also includes strategic equity participation by Hanwha Ocean or affiliated entities, long-term LNG purchase arrangements, and midstream solutions including LNG carriers, LNG bunkering vessels, and more, the statement said.
Binding agreements
Any future commitments regarding engineering, investment, operations or LNG offtake remain entirely subject to further due diligence, the negotiation and execution of binding agreements, corporate board approvals, and customary conditions, the partners said.
The proposed Kanata LNG project remains subject to numerous approvals and conditions, including environmental assessments, engagement with Indigenous communities, regulatory approvals, and the negotiation and execution of definitive commercial agreements, they said.
“Canada has world-class natural gas resources and strong long-term potential to support reliable LNG supply to Asia-Pacific markets. We are pleased to establish this strategic relationship with Kanata and to explore how Hanwha Ocean’s FLNG, offshore engineering, construction, and marine energy capabilities could contribute to the proposed Kanata LNG project,” Philippe Levy, president of Hanwha Ocean’s energy plant unit, said.
Hanwha’s LNG moves
Earlier this year, South Korean conglomerate Hanwha signed a memorandum of understanding with Fermeuse Energy to jointly develop the latter’s planned LNG export project in the Canadian province of Newfoundland and Labrador.
Last year, Crown LNG and Fermeuse announced plans to build a liquefaction and export facility valued at up to $15 billion in Newfoundland and Labrador.
Hanwha and its units already have a stake in US LNG firm NextDecade, which is building the Rio Grande LNG export terminal in Texas.
According to Hanwha Ocean’s quarterly presentation, Hanwha Group has a 22.7 percent stake (HIP 9.1 percent, Aerospace 6.8 percent, Ocean 6.8 percent) in NextDecade and is the largest shareholder.
In October last year, NextDecade took final investment decisions on the fourth and fifth train, bringing the total expected LNG production capacity under construction at Rio Grande LNG to approximately 30 mtpa.
