Delfin FLNG Terminal

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Delfin FLNG Terminal is a proposed floating LNG export terminal in Louisiana, United States. It would be the first deepwater floating liquefaction terminal offshore in the United States.[1]

Location

The floating terminal would be located in the Gulf of Mexico, about 50 miles off the coast of Louisiana.

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Project Details

  • Owner: Delfin LNG LLC[2]
  • Operator: Fairwood Peninsula Energy Company[3]
  • Parent: Fairwood Peninsula Energy Company (95%), Enbridge (5%)[4]
  • Location: Port Delfin, Cameron Parish, Louisiana, United States
  • Coordinates: 29.13697735, -93.53395095 (exact)
  • Type: Export
  • Trains: 4
  • Capacity: 12 million metric tonnes per year (3.0 mtpa per train)[5]
  • Cost: US$7 billion
  • Status: Proposed
  • Start Year: 2026[6]

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

Delfin FLNG Terminal is a proposed LNG terminal in Louisiana, United States.[7] The terminal would consist of four floating LNG trains with a total export capacity of 13 million metric tonnes per year of LNG. It is planned for operation in 2021-2022.[8][9] The project costs are estimated at US$7 billion.[10]

In June of 2017, the US Department of Energy approved the companies' application to export LNG from the proposed facility.[11]

As of June 2019, the project is being delayed by more than three years, the company told the U.S. Federal Energy Regulatory Commission (FERC) in a filing. Delfin LNG told regulators that it expects to finish the project 3 years and 6 months later than anticipated and requested an extension. Initial plans were to begin delivering LNG by 2021 at the earliest.[12]

In August of 2019, Golar, an original partner in the project, announced that it had decided to drop out of the project, citing insufficient reliable customers. The chief operating officer (COO) of Delfin LNG LLC, Wouter Pastoor, disagrees that the project isn't viable. However, Delfin LNG LLC has not made a final investment decision (FID) or said how it will finance the project. The FID was originally expected in 2018.[13]

In October of 2019, Delfin LNG LLC announced that it would further delay the FID from 2019 to 2020. Delfin LNG LLC cited the trade war between China and the U.S.'s Trump administration as a reason for the delays. Operations are now expected to begin in 2024.[14]

In July 2020, U.S. FERC granted Delfin LNG LLC a further extension out to September 2021 to commence the building of the terminal. The crisis in global LNG markets which has been amplified by the COVID-19 pandemic was thought to be the main factor behind the project's ongoing delay.[15]

In September 2020, as Delfin LNG LLC was engaged with multiple buyers on flexible contracts for 10 to 25 years, Delfin Midstream Chief Executive Dudley Poston told Reuters that FID for the project was now delayed until 2021. The company needs to sell approximately 2.5 million metric tons of LNG per annum before it can sanction the project, according to Poston.[16]

In July 2022, Delfin LNG announced a sales and purchase agreement with Vitol Inc. for 0.5 mtpa Delfin over a 15-year time period.[6] Delfin LNG also requested more time from the U.S. Federal Energy Regulatory Commissions (FERC) to complete the facility. In a letter to FERC, Delfin LNG sought to extend its permit to construct the facility until September 2023. Delfin has requested FERC extensions three times in the past.[17]

In August 2022, Delfin LNG announced a non-binding heads of agreement (HOA) with the UK's Centrica Plc, which agreed to purchase 1 mtpa LNG for 15 years.[18]

Articles and resources

References

  1. Delfin LNG Project Overview, Delphin LNG, Accessed 4 June 2017
  2. "Home - Delfin LNG". www.delfinmidstream.com. Retrieved 2022-05-11.
  3. U.S. Liquefaction Capacity. EIA. Accessed May 2022.
  4. Delfin LNG Announces Equity Investment by Enbridge, Inc. Business Wire, July 1, 2015
  5. U.S. Liquefaction Capacity, Energy Information Administration, November 3, 2020
  6. 6.0 6.1 LNG Prime Staff (2022-07-13). "Delfin inks long-term LNG supply deal with Vitol". LNG Prime. Retrieved 2022-07-19.
  7. Delfin LNG Expanding in the Gulf of Mexico, Oil & Gas 360, 3 March 2015
  8. "Project Overview," Delfin LNG, accessed Aug 2017
  9. "Delfin FLNG Project Brings Golar LNG Onboard After U.S. Grants Key Export License" Industrial Info Resources, June 23, 2017
  10. "Delfin Floating LNG Project, Gulf of Mexico" Offshore Technology, accessed July 17, 2020
  11. U.S. Approves First Offshore LNG Export Application, The Maritime Executive, 1 May 2017
  12. Kristen Mosbrucker, Delfin LNG project in Cameron Parish delayed for years The Advocate, June 26, 2019
  13. Kristen Mosbrucker, Delfin LNG loses partner, still plans floating export facility in Cameron Parish The Advocate, September 4, 2019
  14. UPDATE 1-Delfin pushes decision to build Louisiana floating LNG export project to 2020 Reuters, October 30, 2019
  15. Scott DiSavino, "U.S. gives Delfin another year to build Louisiana floating LNG project" Reuters, Jul. 15, 2019
  16. Ekaterina Kravtsova, Scott DiSavino, "LNG investments vanish in 2020 as coronavirus slashes oil and gas prices" Reuters, Sep. 8, 2020
  17. LNG Prime Staff (2022-07-18). "Delfin seeks more time to build its US floating LNG export project". LNG Prime. Retrieved 2022-07-19.
  18. "UK's Centrica signs LNG deal with U.S. supplier Delfin Midstream". financialpost. Retrieved 2022-09-01.

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External resources

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