Norway's chemical fertilizer producer Yara announced on Tuesday that it has awarded to Hyundai Mipo Dockyard (HMD) contracts for construction and delivery of three 20,600 CBM semi-refrigerated LPG carriers, each of which is expected to cost 51 million U.S. dollars.

The three ammonia vessels, which will be used to replace some of the existing time chartered vessels, are meant to cover part of the company's long-term transport requirement at attractive rates while meeting stricter environmental regulations and maintaining flexibility to serve its 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 three vessels now on order will take advantage of the latest design and engine developments to optimize fuel consumption, said the company in a press release on Tuesday.

Two of the new vessels will have ice-class capability, according to the company. Scrubber or dual fuel engine options to meet SOX regulations effective Jan. 1, 2015, will be decided by the end of March.

Yara said that it is in discussion with potential partners for combined ship management and equity participation. However, Yara aims to retain majority ownership in the vessels. Endi