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According to a Delfin statement on Wednesday, the two firms entered into an agreement pursuant to which MidOcean can acquire up to a 50 percent 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 second FLNG will leverage the established design of Delfin’s FLNG1 vessel, which reached FID on June 3, and is currently in execution, providing “significant schedule and cost certainty.”
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,” Delfin said.
Siemens LNTP
In addition to the MidOcean agreement, Delfin has issued a limited notice to proceed (LNTP) to Siemens Energy for the procurement of long lead equipment, including four SGT-750 gas turbines and mixed-refrigerant compressors, in connection with Delfin’s second FLNG.
Delfin said the LNTP represents a “key pre-FID milestone as the parties continue advancing the project toward a targeted FID by year-end 2026.”
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,” he said.
De la Rey Venter, CEO of MidOcean Energy, said, MidOcean’s potential participation in FLNG2 is “consistent with our strategy to build a diversified, cost-competitive global LNG portfolio.”
“The project’s repeat-design approach offers an attractive risk-return profile and meaningful execution advantages for all project stakeholders,” he said.
World’s largest FLNG
Delfin’s brownfield deepwater port requires minimal additional infrastructure investment to support up to three floating LNG vessels producing up to 13.2 million tonnes of LNG annually.
The company recently revealed that it has signed a sales and purchase agreement with UK-based energy firm Centrica to supply LNG from the second floating LNG unit as part of its project offshore Louisiana.
Moreover, Delfin’s first FLNG will have a capacity of 4.4 mtpa, making it the world’s largest FLNG in terms of capacity.
It is also the first floating liquefaction facility in the United States.
Delfin said its first FLNG is backed by long-term LNG sales agreements with “leading” global energy companies, including Vitol, Expand Energy, Centrica, and Gunvor.
The unit, which is under construction at South Korea’s Samsung Heavy, is scheduled to begin LNG production in 2030.
