Delfin seeking Chinese funding for first US FLNG project

Delfin Midstream signed a preliminary 15-year deal to sell liquefied natural gas (LNG) with China Gas Holdings from its proposed project to be located 40 miles offshore Louisiana in the Gulf of Mexico.

In an earlier statement by the Chinese company said that the two companies signed a memorandum of understanding for 3 million tons of LNG per year from the project, starting in 2021.

However, speaking to Reuters, Delfin founder and CEO, Frederick Jones, said that reaching the final investment decision (FID) targeted for 2018 will be challenging.

The company has also turned to Chinese banks, that Jones did not name, to secure funds for the project with an $8 billion price tag.

The company would welcome bank loans as well as strategic partnership investment as securing long-term financing is becoming challenging with the rise of the spot market as well as the oversupply.

In June last year, Delfin Midstream formed ties with Golar LNG to jointly develop the Delfin LNG project off the coast of Cameron Parish, Louisiana, deploying Golar’s FLNG technology.

Delfin LNG, the first and only permitted floating LNG export project in the United States, is a brownfield deepwater port consisting of up to four FLNG vessels producing up to 13 million tons of LNG per year, with the production expected to start in 2021.

LNG World News Staff