TEN Orders A Series of Ice-Class Product Carriers

Thursday, January 22, 2004
Tsakos Energy Navigation Limited (TEN) has ordered two handysize, double hull, 1A ice-class tankers, with carrying capacity of 37,000 dwt each. The vessels have a contract price of just under $30 million per ship and are scheduled for delivery in September and December of 2006. TEN also holds options for two additional sister ships of the same specifications, which would be delivered in March and June of 2007. All vessels are to be constructed by Hyundai Heavy Industries at their Mipo shipyard, and represent the 24th and 25th vessels in TEN's newbuilding program since 1997. These vessels are specifically designed to meet the stringent requirements of classification societies and other regulatory bodies, the rules and guidelines of oil majors and various port authorities and terminals relating to environmental protection. They can also carry all petroleum products including all types and categories of aviation fuels and light chemicals including alcohol and MTBE, the "green", environmentally friendly additive in gasoline. Additionally, the vessels adhere to the Finnish Maritime Authority (FMA) standards, which ensure high structure strength for operation in areas with heavy ice presence. "Commercially, these environmentally friendly, high-specification vessels have the opportunity to earn a significant premium for their trading versatility," said Nikolas P. Tsakos, President and CEO of TEN. "At present, there is not an established period market for this type of vessel. However, with 1A ice-class vessels currently earning a substantial premium in the spot market for voyages loading from the Baltic, we believe that high-spec vessels of this type will be in even higher demand in the future. By building these vessels now, TEN joins an exclusive fraternity of shipowners who currently are or planning to participate in this specialized segment of our industry." Early market indicators have shown that exports from the Former Soviet Union (FSU) are expected to grow 8% in 2004. With ongoing export expansion projects in the Baltic Sea, the Black Sea and the Sakhalin Islands in the Far East, Russian exports are expected to account for more than 60% or 0.8 million barrels per day of the incremental global oil production growth in 2004. During winter, in order to transport crude or products from various loading ports in Lithuania, Estonia, Latvia and Russia, tankers with enhanced ice class specification become a necessity. TEN's entry into this rapidly expanding market significantly enhances its global reach and fleet diversity. Mr. Tsakos continued, "The decision to add this type of vessel to our fleet is driven in large part by the return of the FSU to the global oil markets, the continuous expansion of their production and export program, and the desire of our clients to reach this source, regardless of weather or port conditions. The demand for ice-class tankers to transport Russian crude from various northern ports of the Former Soviet Union to the rest of the world make this the perfect time to begin construction of these class 1A tankers, the highest specification currently available." He concluded, "We believe that these newbuildings will provide another opportunity for TEN to increase its earnings potential, and increase shareholder value."
Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

Pirates Approach Tanker in Bab El Mandeb

The U.S. Navy Maritime Liaison Office in Bahrain (MARLO) has advised that on or about 12:30 UTC on 14 April, the Master of an oil tanker reported being approached by a white-blue skiff in position 12.

Shippers Turn to Equity Markets as Sector Eyes Recovery

Shipping companies are turning to equity markets to fill a growing funding gap, betting that investors hungry for decent returns will provide capital to a sector

YPF Tenders to Buy Fuel Oil for June

State-run oil company YPF launched its second fuel oil tender in April, this time to buy two 50,000 metric ton cargoes (some 375,000 barrels each) to be received

Marine Power

NATO to bolster defence of E.European Allies

NATO is sending part of its naval rapid reaction force to the Baltic Sea as part of a drive to step up the defence of eastern European allies in response to the crisis in Ukraine,

Maersk Line named race partner for the Volvo Ocean Race

The world’s largest container shipping company, Maersk Line, is the official shipping partner for the Volvo Ocean Race, the pre-eminent round-the-world yacht race.

New Joint Venture Targets Nuclear Industry

International maritime logistics expert Cory Logistics, part of Braemar Shipping Services plc, has formed a joint venture with universal supply chain specialist

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Naval Architecture Offshore Oil Pipelines Port Authority Salvage Ship Electronics Ship Simulators Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0971 sec (10 req/sec)