Delfin Midstream announces $5-billion FID for first FLNG vessel
Delfin Midstream Inc. says that it has made the final investment decision (FID) for the first FLNG vessel of the Delfin LNG project under development offshore Louisiana.
Delfin FLNG 1 will be the first floating liquefaction facility in the United States and the largest FLNG project globally, with an expected export capacity of 4.4 million tonnes of LNG per year.
Delfin says that achieving a positive FID is a significant milestone since it works to deliver reliable, low-cost LNG exports from the United States to customers around the world.
Concurrent with the FID, a group of investors led by Global Infrastructure Partners (GIP), a part of BlackRock; as well as existing Delfin investors Mitsui O.S.K. Lines, Ltd. (MOL), owner of the world’s largest fleet of LNG carriers; Vitol, a leading energy and commodities trader; and Diameter Capital Partners, a leading alternative credit asset manager, have agreed to invest in the first phase of this critical energy infrastructure project.
Dudley Poston, Delfin CEO, 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.”
Delfin FLNG 1 is backed by long-term LNG sales agreements with leading global energy companies including Vitol, Expand Energy, Centrica and Gunvor and has secured all necessary permits and licenses required to begin construction.
Additionally, construction contracts for Delfin’s first FLNG vessel have been executed with world class partners including Samsung Heavy Industries Co., Ltd. and Black & Veatch.
With the first vessel scheduled to begin LNG production in 2030, Delfin says that it continues to diligently advance towards securing FIDs for FLNG vessels two and three over the coming year.
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.