The US Maritime Administration (MARAD) has issued a license to allow Delfin LNG to own, construct, operate, and eventually decommission an LNG export deepwater port off the US Gulf coast.
Delfin Midstream’s LNG’s deepwater port will be located about 37.4 to 40.8 nautical miles off the coast of Cameron Parish, Louisiana.
MARAD and the US Coast Guard worked with around 15 federal agencies, together with the States of Texas and Louisiana, to review Delfin LNG’s application.
These agencies submitted recommendations for environmental and other license conditions.
Once built, the deepwater port will be the US’ first offshore LNG export project.
The project is a brownfield deepwater port requiring minimal additional infrastructure investment to support up to three FLNGs producing up to 13.2 mill tonnes of LNG per annum.
Delfin Midstream purchased the UTOS pipeline, the largest natural gas pipeline in the Gulf of America, in 2014 and submitted its license application in 2015.
Subsequently, Delfin received a positive Record of Decision from MARAD and approval from the US Department of Energy (DoE) for long term exports of LNG to countries that do not have a free trade agreement with the US for up to 13.2 mill tonnes per annum.
Yesterday it was announced that German energy company, SEFE will offtake 1.5 mill tonnes of US LNG per year from Delfin for at least 15 years.
The contract calls for flexible delivery destinations at SEFE’s discretion, while the free-on-board (FOB) deliveries will commence immediately following the construction and commissioning of Delfin’s FLNGs.
CP2 approved
In addition, Venture Global has received approval from the US Department of Energy (DoE) to export LNG to non-FTA countries for its third project, CP2 LNG, located in Cameron Parish, Louisiana.
Venture Global CEO, Mike Sabel, said: “CP2 LNG is a vital project for the US economy, balance of trade, and global energy security.
“We are grateful for the Trump administration’s return to regular order and regulatory certainty that will allow us to further expand US LNG exports, which have consistently been found to be in the public interest across multiple administrations.
“This will enable us to provide our allies around the world with American LNG in just a few years and for decades to come,” he said.
Earlier this month, Venture Global had revealed that it had launched the FID process for CP2 LNG.
Thus far, the initial phase of CP2 LNG has been sold through 20-year sales and purchase agreements (SPAs) with ExxonMobil, Chevron, JERA, New Fortress Energy, INPEX, China Gas, SEFE and EnBW.
Venture Global said it was in discussions for the remaining capacity and has launched significant off-site project construction, while it has awaited project authorisations from US regulators.
CP2 follows approvals issued by the DoE to Commonwealth LNG, Golden Pass LNG and Delfin LNG, plus other announcements.
However, Venture Global is still facing arbitration over complaints filed by major energy companies, including bp, over alleged delayed long-term deliveries, as the company pursued higher-revenue spot market sales.
The developer countered that the plant was not yet commercially operational and therefore the sales did not violate its contractual obligations.
