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Interesting sound bite from @SPGCI on Delfin #LNG needing to “start from scratch” pic.twitter.com/PWCVk8UHpO
— LNG Investor (@LNG_Investor_) May 28, 2024
Could be some lag like the other news we’ve had, but it’s likely. If it goes past the second week into June then they’re gonna slow roll it and probably purposefully delay the permit
Yeah, different time for Port Arthur. I wouldn’t say it dies. It could, but it def gets pushed back a couple of years if they get denied and Biden wins. They’ll apply again like everyone else
I’m aware, but Delfin is in trouble if they don’t get this. Back of the line
Important reminder. Lake Charles #LNG asked for DOE approval by February 2024 to prevent their customers from canceling the contracts. The approval is nowhere in sight❗️
— LNG Investor (@LNG_Investor_) May 25, 2024
Those customers are 🇰🇷SK Gas for 0.4 mtpa & 🇯🇵Kyushu Electric for 1.6 mtpa and a potential equity investment. https://t.co/PqI9cYLyPR
It’s all under the Department of Energy, but FERC maintains more independence in its decisions typically from the DOE, hence why it is lateral and connected via a dashed line to the DOE in that chart and in the same category above Inspector General, who is charged with independently investigating and auditing the DOE itself.
The DOE played a role in FERC’s decision to extend us back in the fall, but the commission is still supposed to ultimately make decisions for itself independent of the DOE.
That is why FERC is still issuing extensions during the DOE pause.
FERC moves differently and more independently than the DOE from the admin
Is next week the week or do we get another bad news afterhours Friday? Public news might lag, but I don’t think the DOE will delay a response post 6/1
I bet it’s just XL175 screwing with everyone based on the low volume
I take it you sold then?
OTC Markets is a mess and the management is a joke if you’ve ever dealt with them, and it could be something innocuous like wanting to get the correspondence sent back to the old address
🚨 $TGLO ┆ Pink Current
— OTC Promo Tracker (@OTCPromoTracker) May 18, 2024
🔑 AS:500.00M ┆ OS:441.48M ┆ US:NaN
✨ Held at DTC Shares Changed:
- 🔴 From: 91,167,650 (91.17M)
- 🟢 To: 91,166,650 (91.17M - 5/17/2024)
(Diff: -1.00K, % Change: -0.001%)
🚨 $TGLO ┆ Pink Current
— OTC Promo Tracker (@OTCPromoTracker) May 16, 2024
🔑 AS:500.00M ┆ OS:441.48M ┆ US:NaN
Address
− Removed
🔴 609 MAIN STREET, SUITE 2500, HOUSTON, TX, 77002
✚/✨ Added/Updated
🟢 14643 DALLAS PARKWAY, SUITE 650, DALLAS, TX, 75254
It’s within the 9 months beginning 6/1, if granted. Let’s see what the DOE comes back with.
Only a couple of weeks left before the license expires.
They conceded to submitting a new DOE application if they don’t secure the MARAD license within whatever timeline the DOE establishes.
The inexcusable MARAD and NMFS delay and findings for additional analysis are the only arguments they have really for a suit and it’s an uphill battle years down the road that likely won’t move the project forward.
Sounds like they’re just making the best case they can and willing to go through all the hoops again if it fails.
You mean 9 months. They start talking about it on page 10-14.
The document was great, except that part was a bit all over trying to cover each scenario and unsure of itself.
They suggested extending it to 12-15 months or doing away with it all together, but if they didn’t then Delfin would commit to the 9 months with MARAD approval and if they failed to get the DWPA license then they would submit a new application with the DOE.
“ First, the new and evolving nature of the FLNGV industry is a factor outside of Delfin’s
control that required it to spend years “to refine its project repeatedly to reflect advances being
made in the FLNG industry, to comply with the ‘best technology’ requirements of the DWPA,
market demand and expectation, and the desire to improve efficiency and environmental
performance.” These actions -- including switching from the original plan of a conversion
FLNGV to a new-build FLNGV, and improving on existing FLNGV design to reduce emissions
– which are not present for land-based LNG export projects, have delayed the Project.
Second, the U.S. – China trade war was an extenuating circumstance outside of Delfin’s control which set back the development of its Project after an early concentrated focus on Chinese investment, construction, and off-take.
Third, the COVID-19 pandemic, an incontestable albeit generally applicable extenuating circumstance, had an adverse impact that caused further delays on Delfin’s project by retarding the necessary commercial contracting. Sierra Club and CBD fault Delfin for “fail[ing] to provide any explanation addressing how COVID-19 continues to hinder their construction and operational plans.” Delfin did not and would not suggest that COVID continues to do so: rather the point is that the pandemic further delayed the commercial success of the Project, which took off starting in 2022.
A fourth extenuating circumstance, the MARAD final licensing process – detailed in the Request at 22-27 and updated in the next section of this Answer – is manifestly outside of Delfin’s control. This regulatory process, not applicable to any of the other LNG export projects with non-FTA authorizations, has undoubtedly and significantly further delayed Delfin’s Project.
Finally, in yet another extenuating circumstance outside of Delfin’s control, there are only a few shipyards in the world capable of constructing Delfin’s FLNGVs and they all have limited slots allocated for ship construction and require binding commitments to proceed.
Combining the unique nature of Delfin’s FLNGV approach and the MARAD process, this extenuating factor of world ship-building capabilities has further delayed the Project. Delfin submits that the combination of all of these extenuating factors resulted in significant delays in the Project and Delfin’s inability to comply with its original export commencement deadline, clearly satisfying one criteria of the Commencement Extension Policy.
Turning to the other criteria of the Commencement Extension Policy, Sierra Club / CBD also argue that Delfin fails to satisfy the “physical construction” requirement. To the contrary, the bulk of Delfin’s Deepwater Port (which does not include the FLNGVs themselves) has already been constructed, as Delfin is efficiently re-purposing existing offshore pipelines to transport feedgas to its vessels.
In response, Sierra Club / CBD counter that “this construction was already completed prior to authorization of this project.”
They do not explain why pre-
existing facilities cannot satisfy the construction prong of the Commencement Extension Policy. Moreover, as stated in the Request, “Delfin has invested tens of millions of dollars purchasing, maintaining, and preparing this infrastructure for use as the foundation of its Deepwater Port.” Thus, Delfin has moved forward with the already constructed infrastructure in the development
of its Project.
Furthermore, as suggested above and emphasized in the Request, project construction for Delfin is very different than for land-based LNG export projects. A land-based project with a FERC authorization in hand – presumably the model contemplated in the Commencement Extension Policy, as the status of all non-FTA authorization holders other than Delfin – can readily commence construction by hiring available labor to begin physical construction of the authorized project facilities. In contrast, absent its final DWPA license, Delfin can neither construct its Deepwater Port (with the limited additional construction that will be added to the existing offshore pipelines) nor rationally commence construction of a multi-billion-dollar FLNGV in an overseas shipyard.”
Thank you for posting
Political wind will shift this where it wants, but I’m hoping that since the government has a certain number of MTPA expected to come from these approved licenses to market, and with the heat of the pause and $19 billion on the line, that they will squeak Delfin by with the DOE extension and the government can cover themselves that they did all of their eco due diligence through MARAD’s review and delay this from starting before the election.
In regard to the DOE app, my concern is still the definition of construction being accepted and the fact that they put a condition on approval with obtaining the MARAD license, which can now be used as an excuse by the DOE to make them reapply for the NFTA license.
We shall see, but if they get the extension then I am not really concerned
I think that’s what we’re all hoping and MARAD just took the heat to delay this a bit.
This election is mostly either a vote for or against Trump rather than one for Joe Biden, so doubtful anyone will be abandoning him over approving little ol’ Delfin
You bet and then he decided it was a good idea to sabotage the whole US LNG industry for the purpose of climate change and give that LNG money that was going to be spent anyways straight to Qatar and Saudi Arabia, what a genius!
No, you just exaggerate my points to fit some opposing absolutist narrative that I must subscribe to.
If Delfin was ready under Trump and had everything lined up then they would’ve FID’d, but they weren’t and they didn’t. That was almost 4 years ago.
It’s just unfortunate now that they are further along that they are caught in a liberal admin with a vendetta against LNG.
Saying this rejection from MARAD and delay of two years would probably not have happened under a Republican or DJT admin is not an out there statement. Response times went from a few months to over a year when the new admin came in.
In fact, the Republicans are the ones who went to bat for Delfin and wrote a letter of Support.
It’s also not crazy to say, as XL has, that under a Biden admin this LNG war with Russia might have helped in its own way and brought Delfin closer then it ever could’ve gotten on its own, while still being held back ultimately by this same impetus.
I can also see both sides, but to say if Republicans were in power this would be a less likely situation with MARAD is not crazy
So we’re supposed to expect admiral Buzby or now Admiral Philips, who take orders for a living and are head of a government agency under the DOT, to just defy the current administration’s directives or give them an easy pass under DJT and just bypass the whole evaluation process? Not likely
It doesn’t have to be binary. They can be both be causes for the same failures or different ones.
It’s Delfin’s fault they played this admin wrong in many ways, but also this admin’s fault they’re so hostile to LNG.
Nothing that crazy about saying this would be less likely under a republican admin.
That was almost 4 years ago now. If they aren’t ready now then how can anyone expect them to be ready then?
They would probably not have been rejected by MARAD though, I can tell you that.
So DJT is at fault because Delfin didn’t get their stuff together in time?
Or should we expect someone appointed by him who takes orders for a living in the military to go against the status quo set by this admin?
Yes, if Trump was in we probably wouldn’t have this issue, but then again it might have incentivized Delfin to keep taking their sweet time. They def miscalculated this whole thing.
Curious what your rating is?
Figured
Anyone reach out to William Daughdrill lately to see if he has any comment on the latest?
Probably won’t say much, if at all, but curious
I’m not and DOE is probably going to come back with an answer before it even has a chance
Just need the Senate to approve and I don’t think it has been brought up yet, so could be a little bit before it does
I’m betting before 6/1, but odds are against them with this administration.
If they get it, then game on and they move ahead with a limited FID before MARAD is figured out.
I’m hoping MARAD made the decision to just delay them for a bit to take the blame and DOE will approve to avoid a political fight and save some face, but who knows.
Well written
I told them these guys are a bunch of crooks, liars, and it would be devastating to our ecosystem to approve such an irresponsible project. BWAHAHAHAHAHAHA!!!!!
Did it, thanks for posting
Where did that volume come from?
This is who we are up against
Negativity and being realistic are two different things. Not my fault people can’t recognize the difference. The facts are this will probably take at least a year to clear with MARAD and some people can’t handle that reality. I’m optimistically cautious on DOE and more so if the approve and get some time to clear this issue. None of that is unreasonable or wholly negative. Trades, investments, and the things we believe in don’t always work out the way they should. Need to recognize all risks in investing, otherwise you make irrational choices
Yes, my pro-Trump posts must give it away