US floating LNG export project struggling to lock in buyers

Delfin LNG, the company behind the floating export development in the Gulf of Mexico, is struggling to secure offtake deals for its 13 mtpa project.

The unit of Delfin Midstream has last year sought and won a 1-year extension from US FERC to build the project’s onshore facilities.

It also pushed its financial investment decision for one year to 2020 and entered into pre-FEED deals for newbuild FLNG vessel with units of Samsung Heavy and Black & Veatch.

In a new move, Delfin LNG is seeking from FERC an additional 1-year extension to build the project’s onshore facilities.

According to a FERC notice, the company is having difficulties to attract LNG buyers citing “global coronavirus pandemic, U.S. trade disputes with China, and the drop in global oil prices”.

Delfin said it continues to negotiate LNG offtake deals and requests an extension of time until September 28 next year to complete construction of the onshore facilities and place them into service.

The onshore facilities include metering, compression, and piping facilities located in Cameron Parish, Louisiana.

These will transport and deliver natural gas to Delfin LNG’s deepwater port in federal waters offshore Louisiana.

Delfin initially partnered with Golar LNG for the development but the latter backed out of the FLNG project last year.

The US company plans to install up to four FLNG vessels that could produce up to 13 mtpa of LNG or 1.7 billion cubic feet per day of natural gas.

It previously said that LNG production should start in the second half of 2023.

Delfin is also developing the 8 mtpa Avocet LNG project with slots for two additional FLNG vessels.

Most Popular

LNG carrier arrives to load first LNG Canada cargo

The 174,000-cbm GasLog Glasgow has arrived at the LNG Canada jetty in Kitimat to load the first LNG cargo produced at the Shell-led terminal, an LNG Canada spokesperson told LNG Prime on Saturday.

Coastal Bend LNG plans large Texas export plant

Coastal Bend LNG said it had initiated development of a 22.5 million ton per annum (mtpa) natural gas liquefaction and export facility on the Texas Gulf Coast.

HD Hyundai Samho scores contract to build LNG carrier quartet

South Korea’s HD Hyundai Samho has secured an order to build four liquefied natural gas (LNG) carriers for about $1.03 billion.

More News Like This

Delfin seeks new DOE extension, eyes FID on first FLNG in August

Delfin Midstream, the US developer of a floating LNG export project offshore Louisiana, is seeking an additional extension from the US Department of Energy. The company is looking to make a final investment decision on the first FLNG in August.

Delfin to supply LNG to Germany’s SEFE

Delfin Midstream, the US developer of a floating LNG export project offshore Louisiana, has signed a heads of agreement with German gas importer SEFE to supply the latter with liquefied natural gas.

Delfin secures MARAD approval for FLNG project

Delfin Midstream, the US developer of a floating LNG export project offshore Louisiana, has secured a license from the US Maritime Administration (MARAD).

Delfin secures DOE extension

Delfin Midstream, the US developer of a floating LNG export project offshore Louisiana. has secured a permit extension from the US Department of Energy, granting additional time to start exports from the FLNG project.