Delfin inks FLNG pact with Devon Energy

Delfin Midstream, the developer of a floating LNG export project in the Gulf of Mexico, has entered into a deal with US oil and gas producer Devon Energy for long-term liquefaction capacity and a pre-financial investment decision strategic investment.

The heads of agreement provides the framework for finalizing a definitive long-term tolling agreement representing 1 mtpa of liquefaction capacity in Delfin’s first floating LNG vessel, with the ability to add an additional 1 mtpa in Delfin’s first or a future FLNG, according to a joint statement.

In addition to providing Devon up to 2 mtpa of total liquefaction capacity on a long-term basis, the HOA also provides opportunity for additional future equity investments in Delfin by Devon, the statement said.

Delfin inks FLNG pact with Devon Energy
Image: Delfin LNG

Dudley Poston, Delfin CEO welcomed this agreement with Devon, “representing a truly strategic partnership between a US producer and a liquefaction provider.”

“Our decision to invest in Delfin was the result of a thorough process intended to create additional pricing diversification for our natural gas portfolio and deliver a sustainable and capital efficient return for our shareholders,” Rick Muncrief, Devon’s President and CEO said.

Following its recent announcement of a binding deal with Vitol and a HOA with Centrica, this announcement represents Delfin’s third major agreement in the past two months.

Delfin is also conducting “numerous advanced discussions” for additional binding SPAs, HOAs and tolling agreements similar to those previously announced, the statement said.

As a modular project requiring only 2 to 2.5 mtpa of long-term contracts to begin construction, and with all necessary permits in hand, Delfin “is on schedule to make FID on its first floating LNG vessel by the end of this year,” it said.

- Advertisements -

Most Popular

LNG tanker suffers rudder failure in Suez Canal

NYK's 2021-built LNG carrier Grace Emilia suffered a malfunction of its rudder in the Suez Canal on Wednesday, but...

Shell’s CEO says Europe’s energy crisis is far from over

The energy crisis in Europe is a "multiyear issue" and governments will have to work faster to address the...

Samsung Heavy to build LNG carrier duo for about $496 million

South Korean shipbuilding giant Samsung Heavy Industries has won a new order to build two liquefied natural gas (LNG)...

More News Like This

Delfin secures extension to build its US floating LNG export project

Delfin LNG, a unit of Delfin Midstream and the developer of a floating LNG export project in the Gulf...

Centrica inks deal to buy LNG from Delfin

Delfin Midstream, the developer of a floating LNG export project in the Gulf of Mexico, has signed a heads...

Delfin seeks more time to build its US floating LNG export project

Delfin LNG, a unit of Delfin Midstream and the developer of a floating LNG export project in the Gulf...

Delfin inks long-term LNG supply deal with Vitol

Delfin Midstream, the developer of a floating LNG export project in the Gulf of Mexico, said it has signed...