LNG

Centrica Plc, the UK owner of the British Gas utility business and an LNG importer, has released stored gas into the grid from the Rough Gas Storage system for the first time this winter season.

Nov 28 (LNGJ) - Delfin Midstream, the US LNG project developer, and global commodities firm Gunvor Group, have signed a long-term LNG Sale and Purchase Agreement. Delfin said that under the 15-year SPA, Delfin would supply between 500,000 tonnes and 1 million tonnes of LNG per annum to Gunvor on a free-on-board basis at the Delfin Deepwater Port to be located 40 nautical miles off the coast of Louisiana.

   “We continue to support US LNG projects and unlock new sources to meet the growing global LNG demand while further expanding our supply portfolio,” said Kalpesh Patel, Co-Head of LNG Trading at Gunvor. Dudley Poston, Chief Executive of Delfin, said he was pleased to enter into a long-term LNG deal. “This latest sale and purchase agreement further demonstrates our attractiveness as a long-term source of scalable, reliable and clean LNG,” Poston stated.

Delfin Midstream, the US liquefied natural gas developer, has finalized a binding LNG sale and purchase agreement with a UK subsidiary of commodities and energy firm Hartree Partners.

Delfin Midstream, the US liquefied natural gas developer, and US oil and gas exploration and production company, Devon Energy, have entered into an LNG export partnership.

The companies agreed to a strategic investment deal and a Heads of Agreement that would give Devon up to 2 million tonnes per annum of liquefaction capacity.

The Delfin floating LNG project is based on the deployment of vessel-borne liquefaction facilities with other moored production and storage vessels and recently asked the Federal Energy Regulatory Commission to extend the deadline for the onshore completions of the venture to the 28th of September 2023.

The Delfin developers have already been awarded a deepwater port licence by the US Maritime Administration (MARAD) and the project has been approved by the US Coast Guard.

Delfin is additionally seeking to construct, operate and maintain certain onshore metering, compression, and piping facilities located onshore in Cameron Parish in Louisiana.

Offshore Louisiana

Delfin, based in Houston, Texas, said the HOA provided the framework for finalizing a definitive long-term tolling agreement representing 1 MTPA of liquefaction capacity in Delfin’s first FLNG vessel offshore Louisiana, with the ability to add an additional 1 MTPA in Delfin’s first or a future FLNG unit.

In addition to providing Devon with up to 2 MTPA of total liquefaction on a long-term basis, the HOA also provides opportunities for additional future equity investments in Delfin.

“We are delighted to execute this agreement with Devon, representing a truly strategic partnership between a US producer and a liquefaction provider,” said Dudley Poston, Delfin Chief Executive.

“We believe our unique liquefaction solution provides significant structural flexibility that allows producers to maximize the value of their natural gas, while providing a much-needed source of additional supply to the world LNG marketplace,” added Poston.

Devon is a leading independent E&P company in the US with a premier multi-basin portfolio and a world-class acreage position in the Delaware Basin of West Texas and southern New Mexico.

Investment

“Our decision to invest in Delfin was the result of a thorough process intended to create additional pricing diversification for our natural gas portfolio and deliver a sustainable and capital efficient return for our shareholders,” said Rick Muncrief, Devon’s President and CEO.

“Devon has a strong track record of finding best-in-class midstream and downstream solutions for our production and we are excited to partner with Delfin to meet the need for safe, clean and reliable energy,” stated Muncrief.

Delfin has additionally signed a binding SPA with global commodities company Vitol and an HOA on supply with UK utility Centrica.

As a modular project requiring only 2 MTPA to 2.5 MTPA of long-term contracts to begin construction, and with all necessary permits in hand, Delfin is on schedule to make its FID on its first FLNG vessel by the end of 2022.

In the Delfin-Devon deal discussions, Latham & Watkins LLP served as legal advisor to Delfin and Kirkland & Ellis LLP was legal advisor to Devon.

Delfin LNG, the US floating liquefaction and export project proposed for offshore Louisiana, has filed with the Federal Energy Regulatory Commission for a third extension of permits to complete the venture.

Delfin Midstream, the US LNG export project shareholder offshore Louisiana, has completed the engineering and design phase of the venture for the first of its floating production vessels with South Korean shipyard Samsung Heavy Industries and US liquefaction technology company Black & Veatch.