Delfin still working to secure long-term LNG contracts

Delfin LNG, the developer of a floating export development in the Gulf of Mexico, is still working to secure long-term offtake deals.

The unit of Delfin Midstream revealed this in a letter to US FERC seeking an additional 1-year extension to build the project’s onshore facilities until September 2022.

This is the third time Delfin has asked FERC for an extension to build the facilities.

Delfin won an extension last year to construct the facilities by September 2021.

The facilities would transport and deliver natural gas to Delfin’s deepwater port in federal waters offshore Louisiana.

Delfin plans to install up to four self-propelled FLNG vessels that could produce up to 13 mtpa of LNG or 1.7 billion cubic feet per day of natural gas.

In addition, Delfin has last year completed the front-end engineering and design work on a 3.5 mtpa vessel that would be used for its floating export development.

According to Delfin, the FEED results together with the overall development activities enable the company to execute the project for a total capital cost of around 550 $/tpa.

Delfin said in the letter seeking the third extension that the “world economic conditions are recovering from the Covid-19 pandemic and the spot and short-term markets for LNG have significantly improved.”

This would “support the company to enter into long-term LNG offtake contract(s).”

Moreover, the company said it has continued offtake discussions with “numerous potential LNG buyers.”

“Currently, Delfin LNG has been able to enter into detailed negotiations with these
parties, and its objective is to sign long-term LNG offtake contract(s) in the coming year,” the firm said.

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