Delfin Midstream Brings MidOcean Into Second Louisiana FLNG Project

Delfin Midstream has advanced its second floating LNG project by ordering long-lead equipment from Siemens Energy and signing an agreement that could give MidOcean Energy up to a 50% stake in FLNG2 ahead of a targeted FID by year-end 2026.

(P&GJ) — Delfin Midstream has taken another step toward developing its second floating liquefied natural gas (FLNG) vessel by issuing a limited notice to proceed (LNTP) to Siemens Energy for long-lead equipment while signing an agreement with MidOcean Energy that could give the company up to a 50% ownership stake in the project.

The FLNG2 project, planned offshore Louisiana, is targeting a final investment decision (FID) by the end of 2026. Siemens Energy will begin procuring key equipment, including four SGT-750 gas turbines and mixed-refrigerant compressors, to support the vessel.

Separately, MidOcean Energy, an LNG company managed by EIG, has entered into an agreement that would allow it to acquire up to a 50% equity interest in FLNG2, subject to a positive FID and customary closing conditions. The agreement also provides MidOcean with a corresponding share of future LNG production.

FLNG2 will use the same design as Delfin's first floating LNG vessel, FLNG1, which reached FID on June 3. The repeat-design strategy is expected to reduce construction risk, improve cost certainty and accelerate execution.

Delfin and MidOcean also said they are collaborating on pre-development work for a potential FLNG3 project as they seek to expand Gulf Coast LNG export capacity.

Delfin CEO Dudley Poston said securing manufacturing capacity for critical equipment is an important milestone ahead of FID.

"Securing manufacturing slots for critical long lead equipment with Siemens Energy is an important advancement in de-risking the project schedule as we work toward FID for the second vessel," Poston said.

MidOcean CEO De la Rey Venter said the company's planned investment aligns with its strategy of building a diversified global LNG portfolio.

"The project's repeat-design approach offers an attractive risk-return profile and meaningful execution advantages for all project stakeholders," Venter said.

FLNG2 is expected to have a 4.4 MMtpy nameplate liquefaction capacity and will connect to existing offshore pipeline infrastructure at the Delfin Deepwater Port. Following a positive FID, the project would advance to a full notice to proceed and broader engineering, procurement and construction activities.