Norwegian fertilizer firm Yara International has entered into shipbuilding contract with Hyundai Mipo Dockyard for the construction of three ammonia carrying vessels at a cost of $51 million per ship, it said on Tuesday.

The three 20,600 cubic metre, semi-refrigerated LPG carriers will replace existing time chartered vessels, covering part of the firm’s long-term transport requirement.

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

“Going forward, Yara will continue to evaluate vessel ownership versus time charter on a case-by-case basis, relative to prevailing market conditions,” it added. (Reporting by Balazs Koranyi)