With latest LNG sale and purchase agreement, Delfin eyes FID in mid-2023

Delfin LNG, a wholly-owned subsidiary of Delfin Midstream, has concluded a binding LNG sale and purchase agreement (SPA) with Hartree Partners’ unit Hartree Partners Power & Gas Company (UK) Limited.

The SPA will see Delfin LNG supply 0.6 million tonnes per annum (mtpa) of LNG to Hartree for a 20-year period. The LNG will be supplied on a free-on-board basis at the Delfin Deepwater Port, 40 nautical miles off the coast of Louisiana.

“We are excited about partnering with Delfin LNG and to strengthen their progress toward reaching final investment decision and look forward to a successful and collaborative long-term relationship”, said Stephen Hendel, one of Hartree Partners’ Founding Managing Directors. “This deal will also support our wider strategy of delivering low-cost, tailor-made and reliable LNG supply chain solutions that meet the specific requirements of our customers.”

Delfin stated that the agreement with Hartree serves as an additional milestone and builds on the company’s previously announced long-term agreements with strong, strategic counterparties. The company has now secured commitments for 3.1 mtpa of LNG sales which is sufficient to make final investment decision (FID) on the first floating LNG (FLNG) vessel for the Delfin Deepwater Port LNG Export Facility. Delfin added it expects to make FID in mid-2023.

“The signing of this long-term SPA with Hartree represents another significant milestone for our company and signifies the beginning of a strong, mutually beneficial relationship with a world-class trading company such as Hartree”, said Dudley Poston, CEO of Delfin.

“The Delfin project’s ability to make FID one vessel at a time is attracting significant interest from buyers, and Delfin is already in advanced discussions for marketing LNG for its second FLNG vessel.”

Delfin has also appointed Citi as its exclusive financial structuring advisor and is well-advanced in securing project-level equity and debt for the first FLNG vessel.

Wouter Pastoor, COO of Delfin, added: “With strong commercial and financial progress, Delfin is finalizing construction contracts for multiple identical liquefier vessels which will offer material cost savings and position us to make FID on our second FLNG vessel by the end of this year.”

Delfin LNG project is a brownfield Deepwater Port requiring minimal additional infrastructure investment to support up to four FLNG vessels producing up to 13 mtpa of LNG.