Yara back at HMD

Yara International has ordered three 20,600-cbm semi-refrigerated LPG carriers at Hyundai Mipo Dockyard (HMD).
Yara is back at HMD

Yara is back at HMD

The Norwegian industrial conglomerate said the newbuildings will cost $51m each. No delivery dates were given.

The Oslo-listed company said it had opted for newbuildings following an evaluation of current new-build and time charter rates.

Yara said the new tonnage will replace existing time chartered vessels covering part of its long-term transport requirement at what it described as “attractive rates”.

Two of the three newbuildings will be ice-classed, while Yara said it will decide by March on whether scrubber or dual fuel engine options will be used to meet SOX regulations effective 1 January 2015.

Discussions with potential partners for combined ship management and equity participation are underway though Yara aims to hold on to majority stakes in the vessels, it added.

The fertiliser and chemicals 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.

In December the company marked its return to ship ownership with an order for two midsize LPG vessels at HMD also at $51m per ship, in a deal first uncovered by TradeWinds.

Yara’s return to shipowning came seven years after selling its fleet of ten LPG carriers to BW Gas (now BW LPG) for $347m.