Delfin Plans Final Decision on US Gulf of Mexico LNG Project in 2022
(Reuters) — United States LNG developer Delfin LNG said it plans to make a final investment decision (FID) to go forward with its Gulf of Mexico floating LNG export project off Louisiana in 2022.
"This is the best macro environment that the LNG business has ever seen," Delfin Chief Executive Dudley Poston told Reuters this week, noting he was "very confident" the company would make FID this year.
Delfin is one of a dozen or so North American LNG export projects that delayed decisions to start construction in 2020 and 2021 in part because coronavirus demand destruction made customers unwilling to sign enough long-term deals needed to finance the multibillion-dollar facilities.
"We're now seeing the most sustainable interest from LNG buyers ... that we've seen in years and Delfin only needs two to three buyers," Poston said.
"We're already in contractual discussions for more than we need for the first vessel. We just need to get a couple of those guys across the line."
Delfin's project would use existing offshore pipelines to supply gas to up to four vessels that could each produce about 3.5 million tons per annum (MTPA) of LNG.
Poston said each vessel would cost about $2 billion with the first expected to enter service around 2026, four years after the FID.
After the first FID, Poston said Delfin would start working on its Avocet project, which would add two more 3.5-MTPA liquefaction vessels.
Related News
Related News
- Trump Aims to Revive 1,200-Mile Keystone XL Pipeline Despite Major Challenges
- ONEOK Agrees to Sell Interstate Gas Pipelines to DT Midstream for $1.2 Billion
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- Boardwalk Approves 110-Mile, 1.16 Bcf/d Mississippi Kosci Junction Pipeline Project
- Kinder Morgan Approves $1.4 Billion Mississippi Crossing Project to Boost Southeast Gas Supply
- Tullow Oil on Track to Deliver $600 Million Free Cash Flow Over Next 2 Years
- GOP Lawmakers Slam New York for Blocking $500 Million Pipeline Project
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- Enbridge Should Rethink Old, Troubled Line 5 Pipeline, IEEFA Says
- Polish Pipeline Operator Offers Firm Capacity to Transport Gas to Ukraine in 2025
Comments