Page 6 - GLNG Week 29 2022

GLNG AMERICAS GLNG

Delfin signs SPA for planned

offshore LNG project

PROJECTS DELFIN Midstream finalised a sale and pur- contracts in place in order to begin construction,
chase agreement (SPA) this week with com- according to the company’s statement. Delfin
modity trader Vitol for offtake from its planned said it was on schedule to make a final invest-
floating LNG (FLNG) export terminal in the US ment decision (FID) on its first FLNG vessel by
Gulf of Mexico. the end of 2022.
Under the terms of the agreement, Delfin will The project is designed to accommodate
supply 500,000 tonnes per year (tpy) of LNG to up to four vessels in total, each with a capacity
Vitol from the FLNG facility, which would be to produce 3.5mn tpy of LNG. Feedstock gas
located 40 nautical miles (74 km) off the coast of would be supplied to the vessels using existing
Louisiana. The purchase price will be indexed to offshore pipelines. Earlier this year, Poston said
the Henry Hub natural gas benchmark and the the vessels would cost around $2bn each, with
deal will cover a period of 15 years. According to the first anticipated to enter service around 2026.
Delfin’s statement, the agreement has been val- However, those comments came before the war
ued at around $3bn in revenue over the 15-year in Ukraine upended global gas markets and led
period. to new inflationary pressure on costs. However,
“Recent events have only accelerated the need the war has also added to a sense of urgency to
for a wider array of potential buyers to source secure long-term sources of supply among buy-
reliable low-cost energy from the safety of the ers of LNG, reviving the prospects for US export
US at compelling prices and Delfin is perfectly projects – including Delfin’s FLNG scheme – that
positioned to serve this growing need,” stated had previously seen little interest from offtakers.
Delfin’s CEO, Dudley Poston. According to this week’s statement, Vitol has
The FLNG project’s design is modular and also finalised an investment in Delfin in addition
Delfin only requires 2.0-2.5mn tpy of long-term to the SPA.™

P6 www. NEWSBASE .com Week 29 22•July•2022