The front-end engineering design is complete for the Newbuild FLNG Vessel—a key step for the brownfield Deepwater Port Delfin LNG is building off the coast of Southwest Louisiana.
Delfin announced Sunday that its partnership with Samsung Heavy Industries and Black & Veatch was successful in developing a robust, low cost and efficient floating LSG vessel design for the project.
Delfin Midstream, which is developing the project, owns the offshore UTOS and Grand Chenier pipelines to supply feedgas to offshore moored FLNG vessels. The Delfin LNG project is fully permitted with a 13 MTPA non-FTA export license from the U.S. Department of Energy.
According to Delfin, each FLNG Vessel can be developed independently, with its own commercial and financial structure, “which 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.” It also allows Delfin to offer shorter-term 10-year deals for 115% of Henry Hub plus $2.40 or flexible tolling structures.
According to the company, the Delfin Newbuild FLNG wessel design uses gas turbine technology, optimizations of the Black & Veatch’s patented PRICO liquefaction technology, direct air cooling, and waste-heat recovery to achieve maximum fuel efficiency and minimal (GHG) emissions.
Each vessel will be equipped with two offloading facilities to service both large, ocean-going carriers as well as the regional demand for LNG bunkering and small-scale carriers. With ultimately four FLNG vessels in operation, the project will have 4 berths for 13 MTPA, which, according to Delfin, provides “unmatched operational flexibility to service the bunkering and small-scale market.”
In parallel to the FEED the parties have developed a term sheet for a lump-sum, turnkey engineering, procurement, construction, integration and commissioning contract as a basis for the development of a fully termed agreement.
In making the announcement, Delfin CEO Dudley Poston said the successful completion of the FEED “confirms our ability to offer industry-leading pricing of 115% of Henry Hub plus $2.00 for 20-year transactions.” The company says its discussions with buyers and end-users continue.
Noting recent hurricane activity in the Gulf of Mexico, Delfin COO Wouter Pastoor notes FLNG vessels are self-propelled and use a disconnectable, mooring solution to allow the them to sail away if a severe hurricane passes over the site.