Delfin Signs 20-Year LNG Supply Deal with Hartree
(P&GJ) — Delfin Midstream Inc. has finalized a binding LNG sale and purchase agreement (SPA) with Hartree Partners Power & Gas Company (UK) Ltd., a wholly owned subsidiary of Hartree Partners LP.
Under the agreement, Delfin LNG will supply 0.6 MTPA on a free-on-board basis at the Delfin Deepwater Port, 40 nautical miles off the coast of Louisiana, to Hartree for a 20-year period. The SPA is indexed to the Henry Hub benchmark.
“We are excited about partnering with Delfin LNG and to strengthen their progress toward reaching Final Investment Decision and look forward to a successful and collaborative long-term relationship,” Stephen Hendel, one of Hartree Partners’ founding managing directors said. “This deal will also support our wider strategy of delivering low cost, tailor-made and reliable LNG supply chain solutions that meet the specific requirements of our customers.”
The 20-year binding SPA with Hartree serves as an additional milestone for Delfin and builds on the company’s previously announced long-term agreements with strong, strategic counterparties. Delfin has now secured commitments for 3.1 MTPA of LNG sales which is sufficient to make final investment decision (FID) on the first Floating LNG (FLNG) vessel for the Delfin Deepwater Port LNG Export Facility. Delfin expects to make FID in mid-2023.
“The signing of this long-term SPA with Hartree represents another significant milestone for our company and signifies the beginning of a strong, mutually beneficial relationship with a world-class trading company such as Hartree,” Dudley Poston, CEO of Delfin, said.
Delfin has appointed Citi as its exclusive financial structuring advisor and is well advanced in securing project level equity and debt for the first FLNG vessel.
“With strong commercial and financial progress, Delfin is finalizing construction contracts for multiple identical liquefier vessels which will offer material cost savings and position us to make FID on our second FLNG vessel by the end of this year,” Wouter Pastoor, COO of Delfin, said.
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