28 January 2014 15:21 [Source: ICIS news]
LONDON (ICIS)--Norway-based fertilizer specialist Yara said on Tuesday that it has entered into an agreement with South Korea-headquartered shipbuilder Hyundai Mipo Dockyard for the construction and delivery of three liquefied petroleum gas (LPG) carriers.
Each of the semi-refrigerated vessels will have a capacity of 20,600cbm, and will be used to transport ammonia, the company said. Projected cost per vessel stands at $51m, Yara added, with two of the ships to have ice-class capability.
The decision to commission new carrier ships follows an evaluation of current new-build and time charter rates, Yara said, with the new vessels to replace existing time-chartered vessels.
The company currently has a fleet of 16-18 time-chartered vessels serving its European plants, and long-term off-take agreements in Trinidad and Australia.
Yara added that it is currently in discussion with potential partners for combined ship use and investment, but that it aims to retain majority ownership in the vessels.
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