Delfin completes FLNG FEED

Delfin Midstream has completed the front-end engineering and design work on a 3.5 mtpa vessel that will be used for its floating export development in the Gulf of Mexico.

The US firm is developing the project in cooperation with Samsung Heavy Industries and Black & Veatch.

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.

The company plans to install up to four selfpropelled FLNG vessels offshore Louisiana that could produce up to 13 mtpa.

Each FLNG can be developed independently, with its own commercial and financial structure. This allows Delfin to be at the lower end of the global LNG cost curve combined with the “absolute lowest FID threshold of 2.0 to 2.5 MTPA firm offtake.”

The FLNG design uses the latest gas turbine technology and optimizations of the Black & Veatch’s patented liquefaction technology.

Additionally, each vessel will have two offloading facilities. These will service both large, ocean-going carriers as well as the regional demand for LNG bunkering and small-scale carriers.

In parallel to the FEED, the trio have developed a term sheet for a lump-sum, turnkey EPCIC contract.

This sheet represents a basis for the development of a fully termed deal, Delfin noted.

“Major milestone” towards FID

Delfin chief executive Dudley Poston said the completion of the FEED confirms the firm’s ability to offer “industry leading pricing of 115% of Henry Hub plus $2.00 for
20 year transactions.”

“The flexibility of a low cost, floating asset also allows Delfin to offer shorter term 10 year deals for 115% of Henry Hub plus $2.40 or flexible tolling structures,” he said.

Poston said that the firm continues to advance commercial discussions with multiple buyers and end-users.

He added that the FEED completion is a “major milestone” towards the FID for the first vessel.

To remind, the firm has earlier this year won approval from US FERC to build the project’s onshore facilities.

FERC staff approved Delfin’s request for extension to September 28, 2021.

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

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

- Advertisements -

Most Popular

Sempra, Bechtel ink EPC deal for Port Arthur LNG expansion project

US LNG exporter Sempra Infrastructure, a unit of Sempra, and compatriot engineering and construction firm Bechtel have finalized a...

Tellurian expects to take FID on two Driftwood LNG plants in 2024

US LNG firm Tellurian said on Monday it expects to take a final investment decision in 2024 to build...

German LNG terminal operator gets no bids in latest capacity auctions

State-owned LNG terminal operator Deutsche Energy Terminal will launch new capacity auctions for its FSRU-based facilities in Brunsbüttel and...

More News Like This

Haisla Nation, Pembina take FID on $4 billion Cedar LNG project

Canada’s Pembina Pipeline and the Haisla Nation have taken a positive final investment decision on their $4 billion Cedar...

Black & Veatch wraps up feasibility study for LNG project in Colombia

US-based engineer Black & Veatch has completed a feasibility study for the planned Andes Energy LNG-to-power project in Colombia. Back...

MARAD: Delfin needs to submit amended application for FLNG project

The US Maritime Administration (MARAD) said that Delfin LNG needs to file an amended application for its floating LNG...

Chart scores Cedar LNG gig

US-based LNG equipment maker Chart Industries has secured an order from compatriot engineer Black & Veatch to supply the...