Delfin completes Gulf of Mexico FLNG FEED

Delfin Midstream Inc. has completed front-end engineering and design (FEED) of its newbuild 3.5-million tonne/year (tpy) floating LNG (FLNG) liquefaction plants with Samsung Heavy Industries and Black & Veatch. The vessels would be used as part of Delfin’s planned 13-million tpy LNG export project, stationed off the Louisiana coast.

Delfin’s FLNG design uses optimizations of Black & Veatch’s patented Prico single-mixed refrigerant liquefaction technology. Each of four planned vessels will be equipped with two offloading points to service both large, ocean-going LNG carriers and regional demand for LNG bunkering and small-scale carriers.

The Delfin-owned UTOS (42 in.-OD, 30 miles, 2 bcfd) and Grand Chenier (30-in. OD, 700 MMcfd) natural gas pipelines would supply the FLNG project. The project is fully permitted and has secured Department of Energy export authorizations to both free-trade agreement (FTA) and non-FTA destinations.

Delfin has also proposed a possible 8-million tpy expansion of its FLNG capacity, either through a separate liquefaction project—Avocet LNG—to the east of the Delfin LNG site, or by adding two vessels to Delfin.

In parallel to the FEED the companies have developed a term sheet for a lump-sum turnkey engineering, procurement, construction, integration, and commissioning (EPCIC) contract.

Delfin says it will be able to offer pricing of 115% of Henry Hub plus $2.00 for 20-year transactions, or 10-year deals for 115% of Henry Hub plus $2.40, or flexible tolling structures. The company described completion of FEED as a major milestone towards reaching a final investment decision on the first vessel.

In light of recent hurricane activity in the Gulf of Mexico, Delfin noted that the vessels would be disconnectable and capable of moving to safety in advance of a severe storm. The FEED results, together with overall project development, indicate a total-project capital cost of around $550/tonne/year, according to Delfin.

Delfin earlier this year was granted a 1-year extension—to Sept. 28, 2021—by the US Federal Energy Regulatory Commission to put its floating plant in service.