Greece-based crude, product and LNG tanker operator Tsakos Energy Navigation (TEN) ordered has one-option-one 174,000cbm LNG carrier from Hyundai Heavy Industries (HHI) in South Korea with expected delivery, the first, in the second half of 2021 and the second, in the first half of 2022.
The provider of international seaborne crude oil and petroleum product transportation services said that with this order, if the option is exercised, its LNG proforma fleet increases to four vessels, two of which are currently employed on time-chartered contracts with major international natural gas production and trading entities.
TEN continues its stated policy of maintaining a diversified energy fleet with a focus on LNG as an area of growth. Management intends to explore accretive investments in the sector as it develops.
TEN said that remains firmly positioned to take advantage of the strengthening freight market by virtue of its significant number of vessels in spot trades and vessels on time charter contracts with profit sharing provisions.
In addition, 23 vessels will be up for re-charter during 2020 bringing the fleet with capacity to capture this upside to about 75%.
The vessels on fixed revenue time charter contracts provide solid cash flow generation that covers the entire fleet’s expenses and protect the company from prolonged downturns as in the recent past.
TEN’s diversified energy fleet currently consists of 70 double-hull vessels (pro-forma), constituting a mix of crude tankers, product tankers and LNG carriers (including an LNG newbuilding option), totaling 7.8 million dwt.