LNG export infrastructure development company Delfin Midstream has finalized a binding LNG sale and purchase agreement with the US subsidiary of energy trader Vitol.
Under the agreement, Delfin will supply 0.5 million tonnes per annum (mtpa) of LNG on a free on board (FOB) basis to the deep water port of Delfin 40 nautical miles off the coast of Louisiana. to Vitol for a period of 15 years. The SPA is indexed on the Henry Hub benchmark. The deal is valued at around $3 billion in revenue over 15 years.
In addition to the SPA, Vitol has finalized a strategic investment in the company.
“Recent events have only accelerated the need for a wider range of potential buyers to source reliable, low-cost energy from the safety of the United States at attractive prices,” said Dudley PostonDelfin CEO.
Additionally, the company claims to have signed other partnership agreements and term sheets that are being finalized into fixed-term agreements.
It is a modular project requiring only 2.0 to 2.5 mtpy of long-term contracts to begin construction. Therefore, it is expected to take a final investment decision on the first FLNG vessel by the end of 2022.
Wouter PastorCOO of Delfin, added: “Delfin has completed the licensing work with a positive Maritime Administration Record of Decision with a 13 mtpa non-ALE DoE export license. Additionally, Delfin has completed FEED with Samsung Heavy Industries and Black & Veatch putting us on pace to execute our project this year and begin operations in 2026.”
Carlos WheelockHead of LNG Americas for Vitol, added: “We have seen significant changes in the global energy landscape this year, further underscoring the importance of US liquefaction in meeting global energy needs.”
Delfin Midstream is an LNG export infrastructure development company using low cost floating LNG technology solutions. Delfin LNG is a disused deepwater port requiring minimal additional infrastructure investment to support up to four FLNG vessels producing up to 13 mtpa of LNG.