Yara Selects Hyundai Mipo LPG Carriers

Yara International ASA and Hyundai Mipo Dockyard (HMD) have signed shipbuilding contracts worth approx $153 million for the construction of three 20,600 CBM semi-refrigerated LPG carriers.

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

The 3 vessels now on order will take advantage of latest design and engine developments to optimize fuel consumption, and 2 of the vessels will have ice-class capability.

Scrubber or dual fuel engine options to meet SOX regulations effective 1 January 2015 will be decided by the end of March.

Yara is in discussions with potential partners for combined ship management and equity participation, however Yara aims to retain majority ownership in the vessels.

[mappress]
Press Release, January 28, 2014