Delfin Midstream and Golar LNG have signed a Joint Development Agreement, to develop the Delfin LNG project (Delfin LNG), off the coast of Cameron Parish, Lousiana, utilising Golar’s FLNG technology. The joint development agreement is expected to facilitate the financing, marketing, construction, development and operation of Delfin LNG.
Delfin LNG, the first and only permitted floating LNG export project in the United States, is a brownfield Deepwater Port requiring minimal additional infrastructure investment, to support up to four FLNG vessels producing up to 13 million tonnes of LNG per annum.
The project received a positive record of decision from MARAD on March 13th, 2017. On June 1st, Delfin received approval from the Department of Energy for long-term exports of LNG to countries that do not have a Free Trade Agreement with the United States.
Golar has designed, financed, contracted, and built its first FLNG vessel, the FLNG Hilli Episeyo, which is scheduled to sail away from Keppel shipyard in Q3 2017. A second vessel of the same FLNG design, the FLNG Gandria, is soon to be converted subject to a Final Investment Decision by the Fortuna project partners. Golar is currently developing the Mark II next-generation floating liquefaction solution that will have >3.0 mmtpa of liquefaction capacity and will be the lowest cost liquefaction solution in North America.
It is expected that FID on the Delfin project will take place in 2018, with first LNG to be delivered in 2021/22. Delfin LNG is uniquely positioned in the North American LNG market as a proven low cost solution, modular, scalable, requiring limited additional investments in fixed infrastructure, and having already completed its environmental permitting and received Non-FTA export authorizations.
Oscar Spieler, Chief Executive of Golar, commented: “Golar’s proven execution model will allow Delfin to deliver the lowest cost liquefaction solution in the North American market with a construction time of less than 3 years. Golar’s low cost modular floating technology will allow Delfin to make Final Investment Decisions in 3.0 mmtpa increments at a lower unit cost than large land-based projects.”
