Offshore staff
HOUSTON – Delfin Midstream Inc. says that it has finalized a binding LNG sale and purchase agreement (SPA) with Vitol Inc. (VIC), the Americas-based affiliate of Vitol, an independent energy trader. In addition to the SPA, Vitol has finalized a strategic investment in the company.
Under the SPA, Delfin will supply 0.5 million tonnes per annum (MTPA) on a free on-board (FOB) basis to the Delfin deepwater port to VIC for a 15-year period. The agreement is valued at approximately $3 billion in revenue over that time period.
Delfin LNG is a brownfield deepwater port requiring minimal additional infrastructure investment to support up to four FLNG vessels producing up to 13 million tonnes of LNG per annum. Delfin purchased the UTOS pipeline, the largest natural gas pipeline in the Gulf of Mexico, in 2014 and submitted its deepwater port license application in 2015. The port will be located approximately 40 nautical miles off the coast of Cameron Parish, Louisiana.
As a modular project requiring only 2.0 to 2.5 MTPA of long-term contracts to begin construction, Delfin says that it is on schedule to make the FID on the first FLNG vessel by the end of this year.
Delfin says that it has completed front-end engineering and design with Samsung Heavy Industries and Black & Veatch, which puts it on pace to execute the project this year and to commence operations in 2026.
07.19.2022
