Hanwha Ocean Signs Strategic Memorandum of Understanding with Kanata Clean Power for Proposed Floating LNG Project in Canada
Press Release +Noah Note
Strategic partnership contemplates collaboration on engineering, construction, operations, investment and LNG offtake for proposed 12 MTPA export facility at Prince Rupert, British Columbia
SEOUL, South Korea, and VANCOUVER, BC, June 16, 2026 /CNW/ - Hanwha Ocean Co., Ltd. ("Hanwha Ocean") today announced that it has entered into a non-binding Memorandum of Understanding ("MOU") with Kanata Clean Power & Climate Technologies Corp. ("Kanata") regarding the proposed development of Kanata LNG, a floating liquefied natural gas ("FLNG") export project planned for Prince Rupert, British Columbia, Canada. Kanata's proposed project is expected to have a capacity of up to 12 million tonnes per annum (MTPA).
Kanata estimates total capital expenditures for the project at approximately US$15.7 billion, subject to final engineering, commercial arrangements and regulatory approvals. Under the terms of the MOU, 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;
Operations and maintenance services over the facilities' operating life;
Strategic equity participation by Hanwha Ocean or affiliated entities;
Long-term LNG purchase arrangements; and
Midstream solutions including LNGC, LNG BV and more.
Philippe Levy, President of Hanwha Ocean's Energy Plant Unit, 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. Hanwha Ocean has extensive experience delivering complex offshore energy facilities and believes floating LNG can offer a flexible and scalable pathway for new LNG export developments where the technical, commercial, environmental, and regulatory conditions are properly aligned. This MOU is an important first step. Significant work remains before any final investment or project execution decision can be made, and we look forward to working with Kanata to evaluate the opportunity in a disciplined and responsible manner."
Kanata LNG is being developed as a floating LNG export facility located near Prince Rupert, North America's closest Pacific port to Northeast Asia. The project is intended to leverage modular construction and marine-based liquefaction technology to provide scalable export capacity. Kanata has also offered participating First Nations the opportunity to acquire up to a 50 percent ownership interest in the project, subject to negotiations, financing arrangements and applicable approvals.
Robert F. Delamar, Chief Executive Officer of Kanata Clean Power & Climate Technologies Corp., said: "We are delighted to welcome Hanwha Ocean as a strategic partner in Kanata LNG through this Memorandum of Understanding. Hanwha brings globally recognized capabilities in floating infrastructure, shipbuilding and energy systems, making it an outstanding collaborator as we advance the project."
The MOU described herein is non-binding and intended solely to express the preliminary intentions of the parties to explore potential cooperation. This announcement does not create any legally binding obligations, nor does it obligate either party to enter into any definitive transaction, execute commercial agreements, or proceed with negotiations. 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 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.
Hanwha Ocean is currently participating in discussions regarding Canada's future submarine capability requirements. This cooperation is consistent with Hanwha's ongoing efforts to contribute to Canada's industrial objectives within the scope of its Industrial and Technological Benefits (ITB) considerations. The purpose of this MOU is to explore potential areas for industrial cooperation in Canada, including, where permissible under applicable procurement rules, opportunities related to the Canadian Patrol Submarine Program in which Hanwha intends to participate.
About Hanwha Ocean
www.hanwhaocean.com
Hanwha Ocean is a leading global shipbuilder and offshore/onshore EPCIO company with more than four decades of experience in complex naval and commercial shipbuilding programs and energy infrastructure projects. Supported by its large-scale, integrated shipyard in Geoje, South Korea that spans 5-square kilometers and has more than 31,000 employees, the company combines proven industrial capacity with operational experience to deliver modern, in-service naval platforms backed by a resilient through-life support model. Since its establishment in 1973, Hanwha Ocean has delivered more than 1,400 vessels worldwide and has built deep expertise in the design, construction and sustainment of submarines and surface combatants for the Republic of Korea Navy. The company builds approximately 45 commercial and naval ships each year.
Hanwha Ocean also develops and delivers advanced offshore energy facilities and floating production solutions, leveraging its world-class engineering, manufacturing, and project execution capabilities. The company has a proven track record of successfully executing more than 280 offshore and onshore energy projects worldwide.
About Kanata Clean Power & Climate Technologies Corp.
www.kanataclean.com
Kanata Clean Power & Climate Technologies Corp. is a Canadian energy development company focused on developing low-carbon energy projects. Kanata's core mission is to partner with First Nations to unlock greater value for Canada's abundant natural gas reserves, while providing energy security to Canada's Indo-Pacific allies.
Noah Note: Not shocking to see some energy movement at this stage. The ability of Hanwha to tap into it's forty billion subsidiary and such is one of it's biggest advantages. They have internal options that can target across multiple industries without relying on outside partners to bring to the table or execute.
I have zero clue what Kanata LNG is ngl. So I can't comment on them, but good for them I guess. More LNG is good in my books. In my mind, hitting that 100 mtpa figure shouldn't be as hard as it has been. This contributes fairly to it.