Delfin Midstream partners with MidOcean Energy to advance second FLNG vessel

Delfin also issued a limited notice to proceed to Siemens Energy for four gas turbines and mixed-refrigerant compressors.

Why this news matters:

  • Momentum is building behind US offshore LNG exports. Just weeks after sanctioning its first FLNG vessel, Delfin has lined up a potential equity partner for FLNG2 and started procuring critical long-lead equipment, signaling confidence that additional floating LNG capacity offshore Louisiana could move forward quickly. 

  • The deal helps de-risk a major Gulf Coast LNG project. MidOcean Energy’s planned investment and Delfin’s early equipment orders from Siemens Energy strengthen the commercial and execution foundation for FLNG2 ahead of a targeted final investment decision later this year. 

 

Delfin Midstream Inc. says that it has issued a Limited Notice to Proceed (LNTP) to Siemens Energy, Inc. for the procurement of long lead equipment — including four SGT-750 gas turbines and mixed-refrigerant compressors — in connection with Delfin’s second floating LNG production vessel (FLNG2), to be located offshore Louisiana.

The LNTP represents a key pre-final investment decision milestone as the parties continue advancing the project toward a targeted FID by year-end 2026.

In parallel with the LNTP, Delfin and MidOcean Energy have entered into an agreement pursuant to which MidOcean can acquire up to a 50% equity interest in FLNG2 and receive a corresponding share of LNG production, subject to a positive FID and the satisfaction of customary conditions precedent. 

The FLNG2 vessel will leverage the established design of Delfin’s FLNG1 vessel, which reached FID on June 3, 2026, and is currently in the execution phase. 

Delfin and MidOcean are also collaborating on future pre-development activities to accelerate a potential third floating LNG vessel (FLNG3) following FLNG2, reflecting the parties’ shared commitment to expanding Gulf Coast LNG supply to meet growing global demand.

Dudley Poston, Delfin CEO, said:

“This milestone underscores the commercial readiness of our floating LNG platform, and is another significant step towards global energy security rapidly following a positive FID for Delfin’s FLNG1. Securing manufacturing slots for critical long lead equipment with Siemens Energy is an important advancement in de-risking the project schedule as we work toward FID for the second vessel. We are pleased to partner with MidOcean, whose deep LNG expertise and financial capabilities make them an ideal partner for FLNG2 and beyond.” 

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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.

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