Delfin plans to take FID on first floating LNG producer in Q2

Delfin Midstream, the developer of a floating LNG export project in the Gulf of Mexico, is expecting to take a final investment decision on its first floating LNG producer in the second quarter of this year.

The firm said in its March corporate presentation that technical, commercial, and financing workstreams for the first FLNG are “on track” for an FID 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.

Delfin said at the time that it expected to take a final decision on its first floating LNG vessel by the end of 2022.

“With fully termed agreements signed and others under negotiation, Delfin is well on its way to FLNG 1 FID and has laid the foundation for FLNG 2 FID,” the firm said in the presentation.

According to Delfin, the firm has identified over 40 mtpa of liquefaction opportunities that have access to operating or post-FID pipelines, and all of these locations can use Delfin’s FLNG technology.

Besides the Delfin LNG and Avocet LNG projects in the Gulf of Mexico, other locations include Eastern Canada, South Texas, Mexico, while the Cedar LNG project in Canada could also use Delfin’s tech, the presentation shows.

As per the FLNG unit, Samsung Heavy Industries and Black & Veatch previously completed FEED, and the LSTK EPC is “under final negotiations”, Delfin said.

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