HMD Nets LPG Carrier Duo

Yara International ASA has entered into shipbuilding contracts with Hyundai Mipo Dockyard (HMD) for the construction and delivery of two mid-size LPG carriers with an expected cost per vessel of $51 million.

Following an evaluation of current new-build and time charter rates, Yara has chosen to build new vessels to cover part of its long-term transport requirement at attractive rates, meet stricter environmental regulations and maintain flexibility to serve Yara’s production system.

The company has a base ammonia transport requirement of approximately 4 million tons per annum to serve its European plants and long-term off-take agreements in Trinidad and Australia. Yara is in discussions with potential partners for combined ship management and equity participation, however the company aims to retain majority ownership in the vessels.

Yara is currently in discussions concerning further shipbuilding contracts for Handy-size vessels, which are expected to be finalized and announced in January 2014.

[mappress]

Press Release, December 18, 2013