TEN orders LNG carrier plus option from South Korean shipbuilder

“The LNG sector together with the offshore shuttle tankers market will be playing a growing role in our company’s affairs going forward,” says Mr. Nikolas P. Tsakos, President & Chief Executive Officer of Athens headquartered Tsakos Energy Navigation Limited (TEN) (NYSE: TNP). The company has just announced the order of a state-of-the-art LNG carrier for delivery first quarter 2015 at a major South Korean shipyard. The order with the shipbuilder includes an option for a second ship.

The vessel is of the tri-fuel design, enabling the ship to run on fuel oil, marine diesel/gas oil and natural gas offering attractive alternatives to charterers. Discussions for long-term contracts have commenced and TEN management is confident that such employment will be secured well before delivery in early 2015.

Concurrently with this order, TEN announced the commencement of the previously announced four-year charter for its LNG carrier Neo Energy to a major international entity and a repeat employer of the vessel at an accretive rate reflective of current market conditions.

“The LNG sector together with the offshore shuttle tankers market will be playing a growing role in our company’s affairs going forward. These segments provide longer term fixed rate charters that enhance the visibility of future revenues and profits and allow the company to maintain its strong balance sheet and dividend sustainability going forward,” said Mr. Tsakos. “These new LNG orders add to the company’s two shuttle tanker contracts with delivery in Q1 and Q2 2013 to a major South American oil company for 15 years each with minimum revenues in excess of $500 million in total. Today we operate one of the most modern product carrier fleets in the world, have significant presence in the crude sector and enhanced ice-class capabilities. These new investments follow our clients’ needs in the ever growing energy sector and we remain committed to provide them with a diversified fleet to meet their requirements. In the meantime and in this low cost environment, we entertain various opportunities in the greater tanker sector and intend to move on these in the near future.”

“We are particularly pleased with this order as it expands our presence in this exciting field. LNG operations require a particular set of discipline and commitment in order to gain credence with the sector’s premier charterers and we are proud to have met the challenge,” said Mr. John Stavropoulos, Chairman of the Board.

April 10, 2012