Delfin Midstream, a U.S.-based liquefied natural gas (LNG) export infrastructure development company, is making significant strides in the LNG sector with its recent limited notice to proceed (LNTP) to Siemens Energy for a second floating LNG (FLNG2) vessel. This vessel is set to be deployed off the coast of Louisiana, marking a crucial development in expanding the U.S. LNG export landscape.
Delfin Midstream’s recent actions represent a critical step forward in the development of hidden reserves in the Gulf of Mexico. The LNTP involves Siemens Energy providing long lead equipment, specifically four SGT-750 gas turbines and mixed-refrigerant compressors. This procurement is crucial for the progress of FLNG2, standing as a key milestone leading up to the anticipated final investment decision (FID) by the end of 2026.
Interestingly, this announcement comes shortly after Delfin Midstream secured the FID for its first floating LNG facility, FLNG1, also slated for Louisiana. This momentum highlights not only Delfin’s commitment to LNG exports but also the growing investment interest in American energy infrastructure from global players.
Moreover, Delfin has forged a significant partnership with MidOcean Energy, an investment entity managed by EIG Global Energy Partners. Under this agreement, MidOcean Energy is set to acquire a potential 50% equity interest in FLNG2, which will correspondingly allow them to share in the LNG production. This aligns with their strategy to optimize LNG investments and demonstrates a collaborative approach to meet the surging global demand for energy.
As both companies ramp up efforts in pre-development activities, plans for a potential third floating LNG vessel (FLNG3) are also underway. This reflects an expanding vision centered on Gulf Coast LNG supply, fueling international markets and addressing increasing energy demands globally.
Dudley Poston, CEO of Delfin, emphasized the significance of this milestone: “This milestone underscores the commercial readiness of our floating LNG platform and marks a significant step towards global energy security shortly after achieving a positive FID for Delfin’s FLNG1.” With the focus on securing critical manufacturing slots with Siemens Energy, Delfin is actively working to mitigate project risks, enhancing the timelines for FLNG2.
FLNG2 is anticipated to utilize the proven design established for FLNG1, aiming for an output capacity of 4.4 million tonnes per annum (mtpa). It will be strategically moored offshore Louisiana, linking to existing offshore pipeline infrastructure at the Delfin Deepwater Port. This integration benefits from the ongoing phased multi-vessel development currently being executed, which is designed to streamline operations and reduce costs.
By adopting a repeat-design strategy, Delfin aims to minimize execution risk and shorten construction timelines. Once a positive FID is reached, the project will advance to a full notice to proceed (FNTP), facilitating broader engineering, procurement, and construction scopes to ensure effective rollout.
De la Rey Venter, CEO of MidOcean Energy, highlighted the importance of this venture as well: “The issuance of LNTP to Siemens Energy is a tangible demonstration of the momentum behind the FLNG2 project and the strength of our partnership with Delfin.” The collaboration emphasizes both entities’ focus on developing a diverse and cost-effective global LNG portfolio, ensuring that they remain competitive in an ever-evolving energy landscape.
Delfin LNG has already received key approvals, including a deepwater port license from the Maritime Administration (MARAD) and long-term export permissions from the Department of Energy for up to 13.2 million tonnes of LNG annually. This regulatory backing positions Delfin favorably in the competitive LNG export market, particularly targeting nations without free trade agreements with the United States.