TheGlobe.com Inc (TGLO)

[dave79]

Delfin linkedin page updated 4 hrs ago, with the tradewinds story. Interesting as they usually only post to their page "official" press releases and not interviewed news stories? They appear to be getting the word out, and let's hope they don't need to wait until the end of Q2 to take FID! We're closer then we have ever been, and yes, even after 5+ years!

Thanks to Rhodan for posting the full article (see below), as the link requires a subscription.

https://www.linkedin.com/company/delfin-midstream/

https://www.tradewindsnews.com/gas/delfin-midstream-poised-to-give-go-ahead-to-first-flng-unit-for-us-gulf/2-1-1428297

Would-be US offshore LNG producer Delfin Midstream is closing in on a final investment decision (FID) for its first floating LNG (FLNG) production unit — and is making progress on a second.
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Speaking to TradeWinds in Oslo, Delfin chief operating officer Wouter Pastoor said South Korean shipbuilder Samsung Heavy Industries is working on full pricing proposals that are due to be delivered in May for its first 3.5-million-tonnes-per-annum-capacity FLNG unit.

In tandem, Delfin is negotiating the engineering procurement and construction contract with engineers Black & Veatch, working on financing and finalising the main commercial agreements.

Delfin has already lined up offtakers for this first unit, with trader Vitol buying 500,000 tonnes per annum, UK energy company Centrica pencilled in for one million tonnes per annum and the US’ Devon Energy Corp a further one mtpa, while also targeting investment opportunities in the floater.

Pastoor said Delfin has made “very good progress” on selling additional offtake since announcing these deals in the third quarter of 2022.

He added that the company is in “active negotiations” on additional sales from its first FLNG unit, as well as from its second planned floater — and expects to make further announcements shortly.

Pastoor said Delfin is working towards taking a FID at the end of the second quarter of this year on this first FLNG unit for the company’s 13-mtpa anchor project Delfin LNG, located 40 nautical miles off the coast of Louisiana in the US Gulf.

The fully permitted initiative — dubbed Delfin Deepwater Port — will use pipeline gas to supply four FLNG units, which will weathervane around single-point mooring systems.

Pastoor said being located offshore means there is no one-way traffic and congestion for shipping, which can dog onshore facilities and Delfin’s floaters will be less affected by fog.

Delfin refers to its FLNG units as “liquefiers” to differentiate them from LNG floaters, which are directly hooked up to gas reservoirs.

Pastoor said its units will use more standardised onboard technology, minimising technical and operational complexities along with the overall risk profile of the project, which he claims helps when locking in financing.

Delfin Midstream chief operating officer Wooter Pastoor is a naval architect, and was previously head of commercial and director of FLNG development at Golar LNG. Photo: Delfin Midstream
“We are plugged into the most liquid natural gas pool in the world,” Pastoor said.

“Financing an infrastructure project like this in the US is more favourable than financing an upstream project.”

Under Delfin’s model, each FLNG unit would be an individual company with commercial contracts and finance. FIDs would be taken separately on each floater.

Pastoor said this gives the company a great deal of flexibility on how to handle the financing, structure and the way the company sells the LNG from the unit.

“The market is good and there is a lot of interest from a subset of investors who firmly believe in a long-term strong LNG market,” Pastoor said. “They seek commodity exposure. They believe in the upside of the market.”

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Aside from its anchor project, Delfin has identified other sites for its liquefiers, which it said provides the company with more than 40 mtpa of liquefaction opportunities. But it sold out of the three-mtpa Cedar LNG in Kitimat, Canada, in which it was a partner with the Haisla Nation, although it still has an economic interest in the project.

Pastoor said the investor interest in LNG changed after Russia invaded Ukraine last year.

“We experienced specific interest because the cheque size is less,” he said, explaining that compared with an onshore project that may want to take a FID on a 15-mtpa project, Delfin can do this after securing just 2.5 mtpa in offtake agreements.

“That is of interest to investors,” he said. “There are fewer partners around the table. There are less offtakers, lenders and parties that we need to bring for the equity. It is much more easy to structure a deal.”

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Privately-owned Delfin has now built up its team to between 40 and 50 people, including advisors, and Pastoor said the company is in “expansion mode”. Technical activities are run out of Oslo and the outfit is expected to grow by between 12 and 15 staff by the middle of the year, with commercial offices in London and the US.

Pastoor said Delfin has had interest from companies that want to take stakes in the FLNG units.

“We have had very good discussions with a number of infrastructure parties,” he said.

“We are talking to a number of strategics who want to participate in Delfin Midstream. We see strong interest from producers in the US who seek opportunities to develop their gas assets and seeking exposure to international gas markets.”