Delfin Midstream has completed the front-end engineering and design work on a 3.5 mtpa vessel that will be used for its floating export development in the Gulf of Mexico.
The US firm is developing the project in cooperation with Samsung Heavy Industries and Black & Veatch.
According to Delfin, the FEED results together with the overall development activities enable the company to execute the project for a total capital cost of around 550 $/tpa.
The company plans to install up to four selfpropelled FLNG vessels offshore Louisiana that could produce up to 13 mtpa.
Each FLNG can be developed independently, with its own commercial and financial structure. This allows Delfin to be at the lower end of the global LNG cost curve combined with the “absolute lowest FID threshold of 2.0 to 2.5 MTPA firm offtake.”
The FLNG design uses the latest gas turbine technology and optimizations of the Black & Veatch’s patented liquefaction technology.
Additionally, each vessel will have two offloading facilities. These will service both large, ocean-going carriers as well as the regional demand for LNG bunkering and small-scale carriers.
In parallel to the FEED, the trio have developed a term sheet for a lump-sum, turnkey EPCIC contract.
This sheet represents a basis for the development of a fully termed deal, Delfin noted.
“Major milestone” towards FID
Delfin chief executive Dudley Poston said the completion of the FEED confirms the firm’s ability to offer “industry leading pricing of 115% of Henry Hub plus $2.00 for
20 year transactions.”
“The flexibility of a low cost, floating asset also allows Delfin to offer shorter term 10 year deals for 115% of Henry Hub plus $2.40 or flexible tolling structures,” he said.
Poston said that the firm continues to advance commercial discussions with multiple buyers and end-users.
He added that the FEED completion is a “major milestone” towards the FID for the first vessel.
To remind, the firm has earlier this year won approval from US FERC to build the project’s onshore facilities.
FERC staff approved Delfin’s request for extension to September 28, 2021.
The facilities would transport and deliver natural gas to Delfin LNG’s deepwater port in federal waters offshore Louisiana.
Besides this project, Delfin is also developing the 8 mtpa Avocet project with slots for two additional FLNG vessels.