Delfin LNG Deepwater Port Project, US

Delfin LNG is a planned brownfield deepwater port and floating liquefied natural gas (LNG) export project in the US Gulf of Mexico.

Delfin LNG, a fully owned subsidiary of Delfin Midstream, is the developer of the project.

The project’s Final Environmental Impact Statement (FEIS) was announced in November 2016.

It received a positive Record of Decision from the US Maritime Administration (MARAD) in March 2017.

Delfin LNG has also secured approval from the US Department of Energy for long-term LNG exports to countries that do not have a Free Trade Agreement with the US.

Once complete, the project will be capable of supporting four FLNG vessels with a combined export capacity of up to 13.3 million tonnes per annum (MTPA).

As of November 2023, the company is working on the final phase towards the Final Investment Decision (FID) on the first three vessels.

Delfin LNG Location

The Delfin LNG project would be located in the federal waters in the US Gulf of Mexico.

The deepwater port will be approximately 37.4 to 40.8 nautical miles off the coast of Cameron Parish, Louisiana. Water depths in the region range from 64ft to 72ft.

The onshore component of the project will be located in Cameron Parish.

Delfin LNG Project Development

The Delfin LNG project includes both onshore and offshore components.

The offshore infrastructure will include four semi-permanently moored floating LNG vessels (FLNGVs); four disconnectable tower yoke mooring systems (TYMS); four pipeline riser components; four service vessel mooring points; and four 30-inch-diameter pipeline laterals of nearly 6,400ft each.

Each FLNGV would feature gas pre-treatment and three liquefaction trains. The vessels would also have an LNG storage capacity of around 210,000 cubic metres.

According to the FEIS 2016, the FLNGVs will receive gas from the Delfin Onshore Facility (DOF) located in Cameron Parish, Louisiana via two existing offshore natural gas pipelines- the former U-T Offshore System (UTOS) pipeline and the High Island Offshore System (HIOS).

The two existing 42-inch outside-diameter pipelines would be interconnected by a new bypass at West Cameron block 167 (WC 167) and new offshore laterals from the existing pipelines to the FLNGVs.

Each of the vessels would be moored to a disconnectable TYMS enabling them to weathervane.

The gas will be liquefied and stored on four moored FLNGVs, after it is processed through a gas-metering skid and pre-treatment.

The liquefied natural gas will be then transferred to LNG carriers (LNGC) via ship-to-ship transfer using offloading arms or cryogenic hoses.

The offloading system would be designed to accommodate LNGCs with nominal cargo capabilities ranging between 125,000 and 177,000m³.

Delfin LNG Offtake Agreements

In July 2022, Delfin Midstream finalised a binding LNG sale and purchase agreement (SPA) with energy and commodities company Vitol. Under the SPA, Delfin will supply 0.5 MTPA on a free-on-board (FOB) basis for 15 years. The agreement will generate approximately $3bn in revenue over 15 years.

In September 2022, Delfin and Devon Energy entered into an LNG export partnership. It includes a Heads of Agreement (HOA) which provides the framework for finalising a definitive long-term tolling agreement of 1MTPA in Delfin’s first FLNGV.

Delfin finalised a binding LNG SPA with Hartree Partners Power & Gas in April 2023 to supply 0.6 MTPA on a FOB basis for 20 years.

British multinational energy and services company Centrica signed a long-term SPA in July 2023 for 1MTPA of LNG for 15 years on a FOB basis. This agreement will allow Centrica to take delivery of around 14 LNG cargoes per year.

In November 2023, Gunvor Group, another independent commodities trading house, announced that Gunvor Singapore signed a long-term SPA to procure between 0.5 to 1.0MTPA of LNG per annum for at least 15 years from Delfin LNG.

Contractors Involved

Delfin LNG signed a Joint Development Agreement with Höegh LNG for the Delfin LNG Project in February 2015.

In August 2015, Bechtel was contracted to perform front-end engineering and design (FEED) for the first FLNGV set to go into service at Port Delfin.

Delfin Midstream, in collaboration with Samsung Heavy Industries and Black & Veatch, completed a FEED study for a FLNGV of 3.5 MTPA nameplate capacity for the Delfin LNG Project in October 2020.

In August 2023, Wison Offshore & Marine won a design and engineering contract to develop FLNGVs for Delfin Midstream’s Deepwater Port projects under construction in North America.

Delfin entered into a strategic investment agreement with Mitsui O.S.K. Lines in June 2023. Under the terms of the agreement, MOL will invest in Delfin and a MOL’s representative will join Delfin’s Board of Directors.