LNG export infrastructure development company Delfin Midstream has finalised a binding LNG sale and purchase agreement (SPA) with the Americas-based affiliate of energy trader Vitol.
Under the deal, Delfin will supply 0.5 million tonnes per annum (mtpa) of LNG on a free on-board (FOB) basis at the Delfin Deepwater Port 40 nautical miles off the coast of Louisiana to Vitol for a 15-year period. The SPA is indexed to Henry Hub benchmark. The agreement is valued at approximately $3 billion in revenue over 15 years.
In addition to the SPA, Vitol has finalised a strategic investment in the company.
“Recent events have only accelerated the need for a wider array of potential buyers to source reliable low-cost energy from the safety of the U.S. at compelling prices,” said Dudley Poston , CEO of Delfin.
Moreover, the company says it signed other HOAs and term sheets that are being finalised into fully termed agreements.
This is a modular project requiring only 2.0 to 2.5 mtpa of long-term contracts to begin construction. Therefore, it is on schedule to make a final investment decision on the first FLNG vessel by the end of 2022.
Wouter Pastoor , COO of Delfin, added: “Delfin has completed permitting work with a positive Record of Decision from the Maritime Administration with a 13 mtpa Non-FTA DoE export license. In addition, Delfin has completed FEED with Samsung Heavy Industries and Black & Veatch which puts us on pace to execute our project this year and to commence operations in 2026.”
Carlos Wheelock , Head of LNG Americas for Vitol, added: “We have seen extensive changes to the global energy landscape this year, further underscoring the importance of U.S. liquefaction in meeting the world energy needs.”
Delfin Midstream is an LNG export infrastructure development company using low-cost floating LNG technology solutions. Delfin LNG is a brownfield Deepwater Port requiring minimal additional infrastructure investment to support up to four FLNG vessels producing up to 13 mtpa of LNG.