Delfin Floating LNG Project
Delfin LNG, a subsidiary of Fairwood Group, is constructing a deepwater port and floating LNG export site at Cameron Parish, Louisiana USA.
Upon completion, the facility will be the country’s first floating liquid natural gas project and is expected to cost the developers an estimated $7bn. Earlier in June 2017, the project was authorized by the Department of Energy for exporting LNG to nations that don’t have any Free Trade Agreements with America. However, stakeholders are still waiting for approval from the Federal Energy Regulatory Commission or FERC.
The project is a joint venture between Golar LNG Limited and Delfin Midstream, the companies will cooperate in facilitating the financing, construction, marketing, development and operation of Delfin LNG. While also utilizing Golar’s FLNG technology.
Being a brownfield Deepwater Port, Delfin LNG requires very minimal additional infrastructure expenditure to support the 4 FLNG vessels, with each producing approximately 13 million tones of liquid natural gas yearly and being manned by a team consisting of 50-100 engineers and operators.
Delfin bought the UTOS pipeline back in 2014, later providing its Deepwater Port license application to the authorities for approval in 2015. This is the largest underground gas pipeline in the entire Gulf of Mexico.
Following their submissions for approval, the company received a positive outcome from MARAD on March 2017. Three months later, Delfin Floating LNG got another approval from the US Energy Department, allowing them to export LNG to various countries around the world that have not yet entered into a Free Trade Contract with America.
Golar successfully oversaw the designing, financing, contracting and construction of the first FLNG vessel, also known as FLNG Hilli Episeyo. This facility was scheduled to sail away from Keppel shipyard in the third quarter of 2017. Additionally, a second vessel bearing the same design and dubbed FLNG Gandria is about to be launched soon, only awaiting a Final Investment Decision from the development partners.
Furthermore, Golar is also currently constructing the Mark II future-generation floating liquefaction solution, the project will be based on its worldclass Gandria and Hilli designs. Mark II will have a liquefaction capacity of >3.0 mmtpa, and shall be the most affordable liquefaction service in North America.
Delfin Floating LNG Project Investment
Nevertheless, the project’s final investment decision would be done in 2018, while official commissioning is expected to occur later between 2021 and 2022.
Delfin Floating LNG Project will have a yearly export capacity of 13Mt and with the potential of expanding to 21Mt. It shall also create 200 jobs at the development stage.
During construction, Delfin Floating LNG Project will make use of the existing subsea pipeline network to transport liquid natural gas from the current base in Cameron Parish, Louisiana to 4 floating LNG vessels, which are docked approximately 50m off-shore in the Gulf of Mexico.
The platform will act as a place of connection for the Enbridge Offshore Pipelines network, also known as UTOS. Moreover, the FLNGV vessels will be anchored to a single-point mooring site near the platform. Furthermore, they are expected to hold and cool the natural gas stored inside to temperatures of -260F degrees, which will help convert it to the final liquefied natural gas form.
In a short comment about the project, Golar’s CEO Oscar Spieler said that the company’s proven execution model will permit Delfin to deliver cost-effective liquefaction solutions in the North American market, with construction time expected to be less than 3yrs. Golar’s low cost modular floating solution will make it possible for Delfin to make Final Investment Decisions (FIDs) in 3.0 mmtpa increments, with a much lower unit cost compared to larger land-based projects.
On his part, Delfin’s CEO and Chairman Frederick Jones said that they are looking ‘forward to working with Golar in delivering the 1st floating liquefaction project in US.’ The two companies are also leading the way in the second wave of American LNG projects. Golar’s cutting-edge floating liquefaction technology has proved to be the world’s most affordable liquefaction system, allowing Delfin to provide worldclass commercial solutions with minimal credit requirements and mid-term offtake contracts of up to 10yrs.
The Delfin Floating LNG Project will allow America to supply eco-friendly natural gas to various nations around the world, especially those that are currently relying on harmful hydrocarbons like coal and oil. It will also remove the need for developing onshore storage or liquefaction facilities, which can interfere with the surrounding environment and populace.