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March 1, 2015

Litgas signs gas supplies MoU with Delfin LNG

Litgas has signed a memorandum of understanding (MoU) with Delfin LNG, which is developing the first offshore gas liquefaction project in the US.

Litgas has signed a memorandum of understanding (MoU) with Delfin LNG, which is developing the first offshore gas liquefaction project in the US.

Delfin LNG’s facility in Louisiana will have a total export capacity of 13 million tonnes of LNG per year.

The project will feature onshore gas compression facilities, a 42in pipeline to transport natural gas offshore, and a deepwater port with four moorings and four floating liquefaction vessels.

"Delfin LNG is looking to fill the void by supplying European entities with the diversification they need in an environmentally friendly, cost competitive and efficient manner."

Subject to regulatory approval, the project will be built in phases, with plans to be operational in 2019.

The MoU is not binding in terms of selling or buying LNG, Litgas said.

Litgas general manager Dominykas Tuckus said: "We are actively investigating the potential supplies from the US, signing a MoU with one of the first floating natural gas liquefaction project developers marks a significant step towards further potential cooperation, which in the long run can contribute to the objective of diversification of gas supplies in Lithuania."

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US gas production has increased recently because of the shale boom. However, US gas supply to Europe and elsewhere has not been started until now.

The first LNG export terminal in the US is anticipated to be operational in the second half of 2015.

The LNG projects already sanctioned by US authorities are expected to increase worldwide supply by 30 billion cubic metres per year by 2018.

Delfin LNG president Frederick Jones said: "At this time, the need for diversification of supply in Europe is critical. As such, Delfin LNG is looking to fill the void by supplying European entities with the diversification they need in an environmentally friendly, cost competitive and efficient manner.

"We look forward to continuing the development of the United States’ first floating deepwater liquefaction project."

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