Tsakos Energy Navigation Signs Letter Of Intent For The Construction Of Liquefied Natural Gas Tanker

Navigation Limited (TEN) (NYSE: TNP) today announced that it has signed a Letter of Intent (LOI) with a shipyard specializing in the building of Liquefied Natural Gas (LNG) tankers for the construction of one LNG tanker of

145,000 cubic meter capacity for delivery in July 2007. The LOI also provides for an option for an additional vessel for delivery later that year. These newbuilds would represent TEN's first orders for vessels in the rapidly

growing LNG market.

Mr. Nikolas Tsakos, President and CEO of TEN, stated, "LNG currently represents one of the fastest growing shipping segments in the global energy market. In 2003, the global LNG trade grew by 13% and is expected to double

by 2010. Low cost natural gas reserves in the Middle East and Africa, combined with a decreasing cost structure of the LNG process, will allow large-scale expansion of the trade. With the vessels announced today, TEN is

poised to join a select group of operators who will be able to take advantage of this growing market segment."

The current LNG carrier market appears very fragmented, with only 40 owners operating 160 vessels, and is characterized by long-term contracts that typically average about 20 years. The long-term fundamentals of this sector are sound, as most LNG vessels currently on order (approximately 60 vessels) are already dedicated to satisfy the transportation needs of

specific existing LNG projects. Current market estimates project demand growth for LNG tankers to exceed the current orderbook by 100 vessels by 2010.

Increased competition for shipyard capacity from tankers, bulkers and containerships has resulted in a shortage in LNG shipbuilding capacity.

Based on projections from the US Department of Energy, US LNG imports are expected to rise to 50 million tons per year by 2010, representing a

compounded annual growth rate of over 25%. As a result of the expected growth in LNG demand, expansion projects are already being planned at the four existing LNG regasification terminals in the US, and many liquefaction projects have been proposed to facilitate the expected increase in US LNG imports. While LNG imports into the US doubled in 2003, this amount represented only 2% of U.S. natural gas demand. In addition many liquefaction projects are also currently under underway around the globe in order to meet

the rise in worldwide LNG demand.

"The announcement of this letter of intent begins a new chapter in the history of TEN," Mr. Tsakos continued. "Our commitment to a diversified fleet to meet the growing needs of our clients will be further enhanced by our

ability to serve the LNG market. Looking to the future, we are confident that the global demand for these types of vessels will increase dramatically. The high-spec nature of these LNG carriers, as well as the 10 ice-class vessels

that we currently have on order, will provide for significant charter premiums, increased earnings and shareholder returns."

Including options and the LNG carriers announced today, TEN's fleet is expected to grow to 44 vessels by the end of 2007. Out of the 28 vessels currently trading, 22 operate with medium or long-term employment contracts,some at variable rates, accounting for 70% of the operating days for 2004, and 56% of the operating days of 2005. These contracts will generate a minimum of approximately $140 million in revenues for 2004 and $110 million for 2005, which should provide a sustainable flow of earnings. The company currently employs its remaining 6 vessels in the spot market. Currently, 90% of TEN's

fleet is of the double hull design.

ABOUT TSAKOS ENERGY NAVIGATION

TEN currently operates a fleet of 28 vessels (including one chartered-in aframax, the Olympia, and the two suezmaxes, the renamed Cape Baker and Cape Balboa, recently the subject of the sale and charter-back deal). The fleet comprises 2,981,252 DWT and has an average age of 6.9 years, compared to the average for the world's tanker tonnage which has an average age of 12.8 years. TEN is scheduled to take delivery of a further fourteen newbuildings between 2004 and 2007. The Company also has options for two additional vessels, a handysized tanker for delivery in 2004 and an LNG carrier for delivery in 2007. The resulting fleet of 42 vessels (excluding the options but including

the chartered-in aframax and suezmaxes) with 3,969,572 DWT will include 30 newbuildings (1997-2007) with 2,970,633 DWT and 145,000 cubic meters.