Delfin Midstream has confirmed a final investment decision (FID) for its first floating liquefied natural gas (FLNG) vessel, allocating $5bn to the first phase of the Delfin LNG project off the coast of Louisiana, US.
The brownfield deepwater port project is located in the Gulf of Mexico.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The planned Delfin FLNG 1 will be the first FLNG production facility in the US. It is set to become the largest FLNG project worldwide, with a targeted export capacity of 4.4 million tonnes per annum (mtpa).
According to Delfin Midstream, the Delfin LNG project requires minimal new infrastructure. The project could eventually accommodate up to three FLNG vessels with a total capacity of up to 13.2mtpa.
Delfin Midstream CEO Dudley Poston said: “Securing FID for our first FLNG vessel is a groundbreaking milestone not only for Delfin but also for global energy security. We are excited by our ability to support US energy and maritime dominance by bringing safe, reliable, low-cost LNG exports to market.
“This monumental achievement is a testament to the strength of our partnerships, meaningful collaboration across all project stakeholders and the hard work of our dedicated team. We look forward to working closely with GIP, MOL and Vitol on delivering this first phase of the Delfin LNG project.”
Alongside the FID, Delfin Midstream secured funding for the project from a consortium of investors led by Global Infrastructure Partners (GIP), part of BlackRock.
Other participants include Mitsui O.S.K. Lines (MOL), which operates the world’s largest LNG carrier fleet, as well as Vitol and Diameter Capital Partners, both existing investors in Delfin Midstream.
Delfin FLNG 1 is supported by long-term sales agreements with several global energy companies including Vitol, Expand Energy, Centrica and Gunvor.
Vitol Americas president and CEO Ben Marshall said: “This is an important investment for Vitol in the US. Delfin FLNG 1 will deliver reliable, cost-competitive American energy to global markets. We are proud to be a part of this first for American energy alongside Delfin, GIP and MOL.”
The project has obtained all permits and licences needed to move forward with construction.
Agreements for the vessel’s construction have been finalised with Samsung Heavy Industries (SHI) and Black & Veatch.
In January this year, Delfin Midstream announced an extension of its letter of award with SHI.
Delfin Midstream aims to start LNG production from the first vessel in 2030. It is planning to progress towards FIDs for a second and third vessel over the next year.
