Delfin inks long-term LNG supply deal with Hartree

Delfin Midstream, the developer of a floating LNG export project in the Gulf of Mexico, has finalized a binding long-term deal to supply liquefied natural gas to a unit of Hartree Partners.

Under the SPA, the company’s unit Delfin LNG will supply 0.6 million tonnes per annum on a free on-board basis at the Delfin Deepwater Port, 40 nautical miles off the coast of Louisiana, to Hartree Partners Power & Gas Company (UK) for a 20-year period.

Delfin said in a statement on Monday that the SPA is indexed to the Henry Hub benchmark.

FID in mid-2023

According to Delfin, the 20-year binding SPA with Hartree serves as an additional milestone for the company and builds on the company’s previously announced long-term agreements with strong, strategic counterparties.

Delfin says it has now secured commitments for 3.1 mtpa of LNG sales which is sufficient to make final investment decision on the first FLNG vessel for the Delfin Deepwater Port LNG export facility.

The firm expects to make FID in mid-2023.

Delfin has appointed Citi as its exclusive financial structuring advisor and is “well advanced” in securing project level equity and debt for the first FLNG vessel, it said.

“The Delfin project’s ability to make FID one vessel at a time is attracting significant interest from buyers, and Delfin is already in advanced discussions for marketing LNG for its second FLNG vessel,” Dudley Poston, CEO of Delfin, said in the statement.

“With strong commercial and financial progress, Delfin is finalizing construction contracts for multiple identical liquefier vessels which will offer material cost savings and position us to make FID on our second FLNG vessel by the end of this year,” Wouter Pastoor, COO of Delfin, added.

Up to six FLNGs

Last month, the firm said in its March corporate presentation that it expected to take FID on the first FLNG in the second quarter.

Delfin plans to install up to four self-propelled FLNG vessels that could produce up to 13.3 mtpa of LNG or 1.7 billion cubic feet per day of natural gas as part of its Delfin LNG project.

The firm also aims to install two FLNG units under the Avocet LNG project.

Last year, Delfin signed a $3 billion long-term deal to supply LNG to a unit of energy trader Vitol, as well as a HOA with Centrica.

The firm also entered into a deal in September with US oil and gas producer Devon Energy for long-term liquefaction capacity, but also a pre-financial investment decision strategic investment.

In addition, Delfin won more time from US FERC to put into service the project’s onshore facilities in Louisiana.

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