Algerian state energy company Sonatrach is heading to China for up to two new LPG ships.

Jiangnan Shipyard will build a firm vessel of between 11,000 cbm and 13,000 cbm for subsidiary Hyproc, according to a Sonatrach document seen by Reuters.

The deal is worth $40m, with an optional second ship attached.

The document also said an offer from Hyundai Mipo Dockyard in South Korea had been rejected.

Hyproc