US-listed Tsakos Energy Navigation is in the process of offloading its oldest LNG carrier as secondhand sale interest heats up for the sector amid talk that another Sinokor Merchant Marine steam turbine-driven LNG vessel has also been sold.
Brokers said TEN’s 150,000-cbm LNG carrier Neo Energy (built 2007) is under negotiation at a price close to $80m, which several commented is high, even given the ship’s slightly larger size over other steamships.
They said it is unclear if the sale of the vessel — currently listed as on charter to China National Offshore Oil Corp but also as “idle” — has been concluded as yet but indicated that talks had been narrowed down to a single prospective buyer.
The interested party is described as a “Dubai-based entity”.
Arrow Shipbroking in Dubai is understood to be the broker involved in the deal.
TradeWinds has contacted TEN for comment but has not received a response.
The Neo Energy was TEN’s first and at the time lone entry into the LNG sector. The vessel was ordered when other Greek shipowners were starting to grow sizeable fleets in the sector.
But after building this initial vessel, TEN appeared to retreat from the business until 2013 when it contracted a second LNG newbuilding, this time a dual-fuel diesel-electric vessel, the 174,000-cbm Maria Energy (built 2016).
TEN later grew with another single LNG carrier, adding the 174,000-cbm, two-stroke Tenergy (built 2022) two years ago. The vessel is listed as on charter to Trafigura.
For all its LNG orders, the company is understood to have let associated optional slots lapse at the yard.
TEN chief executive Nikolas Tsakos has repeatedly spoken about growing its LNG interests but has also admitted to being approached by companies interested in consolidation.
Separately, brokers said South Korean shipowner Sinokor Merchant Marine has sold its 138,287-cbm steam turbine LNG carrier Singapore Energy (built 2003) which it circulated for sale late last year.
Brokers said the ship is reported sold at a healthy $43m. Some had previously estimated its value at more than $35m.
The ship is mentioned as sold to Middle East interests ultimately to end up in Russia.
The mention of secondhand LNG carriers being sold to, or negotiated with, Russian interests via Middle Eastern buyers is creating concern in the sector where some are seeing echoes of the tanker sales which helped build up the so-called “shadow fleet” for shipping Russia-related oil and products.
Sinokor, which traditionally has not commented on its commercial business, bought the Singapore Energy as the British Innovator in early 2018 when the ship and a sister vessel were nearing the end of their long-term charters to energy major BP.
At the time, the company was said to have paid in the low to mid-$40m for the LNG carrier which suffered from early Mark III membrane cargo containment system problems as one of the first export LNG carriers built by Samsung Heavy Industries.
