Delfin seals long-term LNG supply deal with Gunvor

Delfin Midstream, the US developer of a floating LNG export project in the Gulf of Mexico, has signed a long-term liquefied natural gas supply deal with a unit of Geneva-based energy and LNG trader, Gunvor.

Delfin LNG, a unit of Delfin Midstream, and Gunvor Singapore entered into the LNG sale and purchase agreement, according to a statement by Delfin Midstream.

Under the SPA, Delfin LNG will supply between 0.5 to 1.0 million tonnes of LNG per year to Gunvor on a free-on-board (FOB) basis at the planned Delfin Deepwater Port, located off
the coast of Louisiana for a minimum duration of 15 years.

Dudley Poston, CEO of Delfin, welcomed the signing of a “major” long-term LNG supply agreement with Gunvor.

This latest sale and purchase agreement “further demonstrates our attractiveness” as a long-term source of LNG, he said.

“We continue to support US LNG projects and unlock new sources to meet the growing global LNG demand while further expanding our supply portfolio,” Kalpesh Patel, co-head of LNG trading of Gunvor, said.

“Final phase towards FID” on first three floating LNG producers

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.

“The company has secured commercial agreements for LNG sales and liquefaction services and is in the final phase towards FID on its first three FLNG vessels,” Delfin said in the statement.

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

Delfin now has time until September 28, 2027, to construct and make available for service the onshore facilities.

Delfin seals long-term LNG supply deal with Gunvor
Image: Delfin LNG

In July, Delfin said it expects to take a final investment decision on its first FLNG in October this year.

Delfin also negotiated a binding engineering, construction, and procurement contract with South Korea’s Samsung Heavy Industries and US engineer Black & Veatch and said that it expects to sign this deal by September this year.

The firm recently also joined forces with China’s Wison Offshore & Marine to develop additional floating LNG producers.

Besides the Wison deal, Delfin sealed a supply deal in July with UK-based Centrica worth about $8 billion.

Prior to that, the firm secured an investment from Japan’s shipping giant MOL and previously signed supply deals with Hartree Partners and Vitol.

In addition to these agreements, Delfin LNG entered into a heads of agreement in September last year with US oil and gas producer Devon Energy for long-term liquefaction capacity, but also a pre-financial investment decision strategic investment.

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