Hanwha Ocean has reportedly won an engineering, procurement and construction (EPC) contract worth KRW 527.9 billion for a 490-megawatt (MW) liquefied natural gas (LNG) district energy facility in Yeosu, South Jeolla Province. The client is Yeosu Eco Energy, an affiliate of Hanwha Energy.
The project involves building an LNG district energy facility, a combined heat and power plant supplying district heating and electricity to an industrial complex, near the central industrial road in Yeosu. The contract period reportedly runs through August 2029. This contract marks Hanwha Ocean’s first entry into onshore power plant EPC work outside of shipbuilding.
The contract value is KRW 527.9 billion, for a plant with 490MW of generation capacity. This is reported to represent approximately 4.1% of Hanwha Ocean’s consolidated revenue of KRW 12.7835 trillion last year. The contract was announced on August 3, 2026.
Hanwha Ocean, which has been pursuing business diversification to hedge against shipbuilding cycle volatility, has expanded into the onshore power plant EPC sector, reportedly leveraging order flow from Hanwha Energy affiliates within the group.
If more shipbuilding and offshore plant specialists enter the onshore power EPC market, the competitive landscape with existing power plant construction specialists could shift. The model of expanding into new businesses by leveraging intra-group ordering relationships may serve as a reference case for other large shipbuilding and heavy industry conglomerates.
Points to watch include the actual construction start date and progress, and whether Hanwha Ocean secures additional onshore power EPC contracts going forward.