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

Baker Hughes secures new contract from Venture Global LNG

US energy services firm Baker Hughes said it had secured a "major" contract from compatriot LNG exporter Venture Global...

Cheniere: Corpus Christi LNG expansion project 43 percent complete

US LNG exporting giant Cheniere and compatriot construction and engineering firm Bechtel are moving forward with the construction...

NFE expects to launch Altamira FLNG project by early November

US LNG firm New Fortress Energy is now expecting to launch its first FLNG project off Altamira in late...

More News Like This

Delfin inks FLNG pact with Wison

Delfin Midstream, the US developer of a floating LNG export project in the Gulf of Mexico, is joining forces...

Delfin expects to take FID on first floating LNG producer in October

Delfin Midstream, the US developer of a floating LNG export project in the Gulf of Mexico, expects to take...

Delfin, Centrica seal $8 billion US LNG supply deal

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

Delfin moves closer to FIDs on two floating LNG producers after MOL deal

Delfin Midstream, the US developer of a floating LNG export project in the Gulf of Mexico, has moved closer...