Delfin Midstream awards $2.9-billion FLNG construction contract to Samsung Heavy Industries
Delfin Midstream Inc. has taken a significant step forward with its groundbreaking Delfin LNG project offshore Louisiana. The company has awarded Samsung Heavy Industries (SHI) of South Korea the engineering, procurement, construction, and installation (EPCI) contract for the first FLNG vessel, valued at approximately $2.9 billion, according to recent reports from Bloomberg and the Baton Rouge Business Report.
This follows an initial Letter of Award (LOA) signed in October 2025, which was extended in January 2026 after successful early engagement work. The full contract award reserves SHI’s dock for construction of the first vessel and paves the way for immediate execution once FID is reached.
The Delfin LNG project is poised to become the first US offshore LNG export facility utilizing floating production technology. Located at a brownfield deepwater port in the Gulf of Mexico (off Louisiana), it leverages existing infrastructure, including Delfin’s acquired UTOS pipeline system, to minimize additional capital needs. The full development envisions up to three FLNG vessels with a combined capacity of 13.2 million tonnes per annum (mtpa) of LNG, with the first unit targeting around 4.4 mtpa.
Delfin has secured binding long-term Sales and Purchase Agreements (SPAs) for approximately 3.3 mtpa with offtakers including Centrica, Vitol, Hartree, Gunvor, and Expand Energy (formerly Chesapeake), supporting the commercial foundation for the first vessel. Additional offtake discussions are ongoing for the second and third units.
The project has obtained key regulatory approvals, including a Deepwater Port License from the US Maritime Administration (MARAD) and US Department of Energy (DOE) authorization for non-FTA LNG exports. Progress on financing for the estimated $4.3 billion first phase is reported to be nearing closure.
Dudley Poston, CEO of Delfin Midstream, highlighted the project’s momentum: “With the last parts of the project coming together, we are very pleased to plan for the FID and immediate execution... Our project represents a significant milestone in the development of critical energy infrastructure in the United States.”
SHI will lead the EPCI scope, with Black & Veatch as a key subcontractor for topsides engineering, procurement, and commissioning using Air Products’ PRICO liquefaction technology. Siemens Energy has already been contracted for critical gas turbine packages.
FID for the first FLNG vessel is anticipated imminently (targeted in recent months following pipeline repairs and regulatory steps), with first LNG production eyed for around 2029–2031. Plans for the second vessel could follow shortly after, with SHI dock reservations in place.
About the Author
Bruce Beaubouef
Managing Editor
Bruce Beaubouef is Managing Editor for Offshore magazine. In that capacity, he plans and oversees content for the magazine; writes features on technologies and trends for the magazine; writes news updates for the website; creates and moderates topical webinars; and creates videos that focus on offshore oil and gas and renewable energies. Beaubouef has been in the oil and gas trade media for 25 years, starting out as Editor of Hart’s Pipeline Digest in 1998. From there, he went on to serve as Associate Editor for Pipe Line and Gas Industry for Gulf Publishing for four years before rejoining Hart Publications as Editor of PipeLine and Gas Technology in 2003. He joined Offshore magazine as Managing Editor in 2010, at that time owned by PennWell Corp. Beaubouef earned his Ph.D. at the University of Houston in 1997, and his dissertation was published in book form by Texas A&M University Press in September 2007 as The Strategic Petroleum Reserve: U.S. Energy Security and Oil Politics, 1975-2005.