Hyundai to build ammonia vessels for Yara
Hyundai Mipo Dockyard to deliver three 20,600 CBM semi-refrigerated LPG carriers with an expected cost per vessel of $ 51 million
BS B2B Bureau B2B Connect | Oslo, Norway
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.
Yara currently has a fleet of 16-18 time chartered vessels serving its European plants and long-term off-take agreements in Trinidad and Australia. The 3 vessels now on order will take advantage of latest design and engine developments to optimise 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.
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Going forward, Yara will continue to evaluate vessel ownership versus time charter on a case-by-case basis, relative to prevailing market conditions. Since time-charter contracts require a parent company guarantee of hire payments, a decision to build rather than charter vessels does not materially impact Yara's debt capacity.
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First Published: Jan 28 2014 | 4:00 PM IST