Indian shipbuilder Swan Defence and Heavy Industries Limited (SDHI) has signed a letter of intent with Norwegian shipowner Rederiet Stenersen AS to build six hybrid chemical tankers.

The IMO type 2 chemical tankers will each have 18,000 DWT capacity, SDHI said in a press release on Monday.

The deal is valued at $220 million, with an option for additional ships.

The vessels will feature a hybrid propulsion system, with a design provision for future conversion to methanol or LNG propulsion.

“We see this as a step towards realizing India’s maritime ambitions by building large and complex vessels across tankers, bulkers, and specialized segments,” Vivek Merchant, director of SDHI, said.

Rederiet Stenersen operates a fleet of 19 tankers, primarily operating in northern Europe.

SDHI, formerly known as Reliance Naval and Engineering Ltd, and before that Pipavav Shipyard Ltd, is an Indian shipbuilder based at Pipavav, Gujarat, now owned by Swan Energy.