Navigator Amon Shipping signs charter contract with Yara for ammonia carrier newbuilds

Norway-based Yara announced on 1 September it has signed a long-term shipping contract with Navigator Amon Shipping, “securing access to two state-of-the-art vessels that will strengthen YCA’s position as a global leader in the low-emissions ammonia market.”

Navigator Amon Shipping is a newly formed joint venture between Navigator Gas and Amon Maritime. The partners ordered the 51,530-m³ vessels from Nantong CIMC Sinopacific Offshore & Engineering Co in China, with deliveries scheduled through 2028.

At the time of ordering, Navigator Amon Shipping noted each vessel would be deployed on a five-year, long-term time charter with a blue-chip industry leader, commencing upon delivery.

Yara highlighted the ice-class vessels will provide reliable, year-round access to Northern Europe. The company added that the ships are expected to reduce freight costs per tonne, strengthen margins and enhance operational flexibility.

Yara Clean Ammonia operates the largest global ammonia network with 15 ships and has, through Yara, access to 18 ammonia terminals and multiple ammonia production and consumption sites across the world. 

’Unlocking the hydrogen economy’

Yara Clean Ammonia chief executive Hans Olav Raen said building scaleable and reliable supply chains is critical to unlocking the hydrogen economy. “This contract provides a logistical and cost-efficient way to move large volumes of ammonia to Europe, reducing operational bottlenecks and delivering economies of scale,” he added.

Navigator Gas chief commercial officer Oeyvind Lindeman, emphasised the partnership “is building the core infrastructure needed to facilitate the uptake of clean energy, using technology that enables compliance with present and future environmental regulations.”

Amon Maritime chief executive André Risholm described the vessels as a milestone in promoting a carbon-free future for shipping. “Partnering with industry leaders such as Navigator Gas and Yara Clean Ammonia allows us to realise this vision and bring ammonia-powered transport into commercial operation,” he said.