Delfin LNG Terminal

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
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Delfin LNG Terminal is a proposed LNG export terminal in Louisiana, United States. It would be the first deepwater floating liquification 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: Fairwood Peninsula Energy Corporation, Leif Höegh & Co
  • Location: Port Delfin, Cameron Parish, Louisiana, United States
  • Coordinates: 29.074272,-92.834569 (approximate)
  • Capacity: 13 million metric tonnes per year[2]
  • Status: Proposed
  • Type: Export
  • Trains: 4
  • Start Year: 2024[3]

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

Background

Delfin LNG Terminal is a proposed LNG terminal in Louisiana, United States.[4] 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.[5][6] The project costs are estimated at US$7 billion.[7]

In June of 2017, the US Department of Energy approved the companies' application to export LNG from the proposed facility.[8]

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.[9]

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, Wouter Pastoor, disagrees that the project isn't viable. However, Delfin LNG has not made a final investment decision (FID) or said how it will finance the project. The FID was originally expected in 2018.[10]

In October of 2019, Delfin LNG announced that it would further delay the FID from 2019 to 2020. Delfin LNG 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.[11]

In July 2020, U.S. FERC granted Delfin LNG 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.[12]

In September 2020, as Delfin LNG 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.[13]

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