Delfin Reaches $5 Billion FID for First U.S. FLNG Project

Delfin has approved a $5 billion FID for the first phase of its floating LNG export project, a milestone that could establish the first FLNG facility operating in the United States.

(P&GJ) — Delfin has reached a $5 billion final investment decision (FID) on the first phase of its Louisiana-based floating LNG export project, advancing what the company says will be the first floating liquefaction facility operating in the United States.

The FID covers Delfin FLNG 1, the first of several planned floating LNG vessels tied to the company's offshore LNG export development. The facility is expected to have export capacity of approximately 4.4 million metric tons per year (mtpa) and is scheduled to begin production in 2030.

Concurrent with the investment decision, a group of investors led by Global Infrastructure Partners (GIP), part of BlackRock, agreed to fund the project's first phase. Existing investors Mitsui O.S.K. Lines (MOL), Vitol and Diameter Capital Partners also participated.

Delfin said the project has secured all major permits and licenses required to begin construction. The company has also executed construction agreements with Samsung Heavy Industries and Black & Veatch for development of the first floating LNG vessel.

"Securing FID for our first FLNG vessel is a significant milestone for Delfin and for U.S. LNG infrastructure development," CEO Dudley Poston said in a statement.

The project is supported by long-term LNG sales agreements with customers including Vitol, Expand Energy, Centrica and Gunvor. Delfin said it continues to advance plans for additional floating LNG vessels and expects to pursue investment decisions on FLNG 2 and FLNG 3 over the next year.

If completed as planned, the project would establish the first floating LNG export facility in the United States and add new LNG export capacity from the Gulf Coast.