$5 Billion approval for America’s first floating LNG project
A final investment decision has been reached for the Delfin FLNG project off Louisiana. First LNG production is targeted for 2030.
One of the United States' key projects aimed at expanding its liquefied natural gas (LNG) export capacity has moved into the investment phase. Delfin Midstream announced that a final investment decision (FID) has been taken for the first floating LNG production and export facility to be deployed off the coast of Louisiana.
The first phase of the project, backed by an investment of approximately $5 billion, will include the construction of Delfin FLNG 1, a floating facility with an annual LNG export capacity of 4.4 million tonnes. Once completed, the project will make the United States home to its first-ever offshore LNG export terminal.
Investors supporting the development include Global Infrastructure Partners (GIP), now part of BlackRock, Japanese shipping company MOL, energy trader Vitol, and Diameter Capital Partners.
Located about 40 miles offshore Louisiana, the facility will differ from traditional land-based LNG terminals by utilizing existing offshore pipeline infrastructure. This approach is expected to reduce the need for extensive onshore construction while enabling LNG processing and export operations directly at sea.
Under approvals previously granted by U.S. regulators, the project is designed to accommodate up to three FLNG vessels. When fully developed, the combined export capacity is expected to reach 13.2 million tonnes of LNG per year.
According to the company, long-term LNG sales agreements have already been secured for the first facility. Vitol, Expand Energy, Centrica, and Gunvor are among the companies that have committed to purchasing LNG from the project. South Korea’s Samsung Heavy Industries and engineering firm Black & Veatch have been selected to support construction activities.
Delfin Midstream expects the first floating LNG facility to begin commercial production in 2030, while development work on the second and third FLNG units continues. The project is expected to strengthen the United States’ position in the global LNG market and provide additional supply to international energy markets.
