Delfin LNG project seeks extension to September 2023 of FERC permit to complete onshore Louisiana facilities

Tuesday, 26 July 2022
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Delfin LNG, the US floating liquefaction and export project proposed for offshore and onshore Louisiana and with a recently signed supply deal with global commodities firm Vitol, has filed with the Federal Energy Regulatory Commission for a fourth extension of permits to complete the venture’s onshore facilities.

The FLNG project is based on the deployment of floating liquefaction facilities with other moored production and storage vessels and has now asked the FERC to extend the deadline for the onshore completions to the 28th of September 2023.

Licences

The Delfin developers have already been awarded a deepwater port licence by the US Maritime Administration (MARAD) and the venture 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.

“The authorized onshore facilities, which consist of just over 2-miles of pipeline, new compression and appurtenant facilities within the fence-line of an existing gas facility, and a new metering and regulation station - will exclusively transport and deliver natural gas to Delfin LNG’s planned deepwater port to be located in the Gulf of Mexico approximately 37.4 to 40.8 nautical miles off the coast of Cameron Parish,” explained Delfin in its filing.

Delfin told that regulators that the public interest findings in the existing order remain equally valid now, and the limited environmental impacts of the onshore facilities had not changed.

Delfin had previously asked the FERC for an extension until 28th March, 2023, to build facilities to connect up to the FLNG units.

The project would use existing offshore pipelines to supply gas to up to four vessels that could produce around 13 million tonnes per annum LNG, or 1.7 billion cubic feet per day of natural gas.

“Delfin LNG continues to propose to change only the timing, not the nature, of its project, and the unforeseen events that have delayed the project have previously been recognized by the Commission,” said the Delfin LNG LLC company in its submission.

“Moreover, Delfin LNG continues to work diligently to develop its project and has made significant progress,” it added.

“Finally, the Delfin LNG project most definitely remains commercially viable, as demonstrated most concretely by the recent SPA with Vitol,” the company declared in its filing.

Delfin told FERC that for all of these reasons, good cause warranted an additional one-year extension of time for completion of the authorized Delfin LNG onshore facilities until September 28, 2023.

FID scheduled

Delfin had announced on July 13 that it entered into a binding LNG sale and purchase agreement with the US-based affiliate of Vitol.

“The SPA is for 500,000 million tonnes per annum of LNG delivered free on-board at the Delfin LNG deepwater port, for a 15-year period, and is valued at approximately $3 billion of revenue over its 15-year term” Delfin noted in the filing.

“In addition to the Vitol SPA, Delfin LNG (or its parent) has entered into term sheets or heads of agreement with other LNG off-takers that are currently being finalized into full and binding contracts which are expected to be executed soon,” it added.

Delfin LNG has completed front-end engineering and design with Samsung Heavy Industries of South Korea and Black & Veatch of Kansas in the US for the construction of the FLNG vessels.

The company added that it had recently conducted meetings with MARAD, and the US Coast Guard, concerning compliance with the conditions of its deepwater port authorization.

“Given all this significant progress, Delfin LNG is on schedule to make a final investment decision on its first FLNG vessel by the end of this year,” it stated.

“Supplying feed gas to that FLNGV depends on the construction and operation of the Commission-authorized onshore facilities,” added Delfin.

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