Delfin gets another extension on Louisiana floating LNG export facility

Delfi n
(Courtesy Delfin LNG)

U.S. energy regulators last week granted Delfin LNG a second one-year extension until September 2021 to build its proposed floating liquefied natural gas export facility off the coast of Cameron Parish, Reuters reports.

Delfin is one of several North American LNG developers that have delayed decisions on whether to go ahead with multibillion-dollar projects as gas prices slumped worldwide and buyers became reluctant to sign long-term agreements needed to fund construction.

Delfin’s project would use existing offshore pipelines to supply gas to up to four vessels that could produce up to 13 million tonnes per annum (MTPA) of LNG or 1.7 billion cubic feet per day (bcfd) of natural gas. Chief Operating Officer Wouter Pastoor said the company was still confident in the project.

A final investment decision for Delfin Midstream Inc.’s planned floating liquefied natural gas export terminal off the coast of Louisiana was originally planned for 2020.

Last year, Delfin had confirmed agreements with units of Samsung Heavy Industries Co. and Black & Veatch for front end and engineering work on the new FLNG vessel. At the time, the company said it was on track to complete and Engineering, Procurement and Construction contract in mid-2020.

LNG production was expected to begin mid-2024.

Delfin has completed permitting work with a positive Record of Decision from the Maritime Administration and a 13 MTPA non-free trade agreement Department of Energy export license. The export terminal will be located 37.4 to 40.8 nautical miles off the coast of Cameron Parish.

Reuters has the full story.