‘Energy addition’ strategy in action: US hands out extension to another LNG export project

The U.S. Department of Energy (DOE) has given its fourth blessing for a liquefied natural gas (LNG) project since the return of President Donald J. Trump to the White House, prolonging the timeline to kick off LNG exports from a terminal off the coast of Louisiana, USA.

Following a delay by the Biden-Harris administration, Chris Wright, U.S. Secretary of Energy, has put his stamp of approval on the Delfin LNG export permit extension, granting additional time to begin exports from the project proposed offshore Louisiana.

Secretary Wright highlighted: “While the previous administration pursued a strategy of energy subtraction, I am proud to be working with President Trump to advance a strategy of energy addition – embracing all forms of energy that are affordable, reliable and secure.

“The positive energy and renewed enthusiasm for U.S. leadership in energy exports from our allies and trading partners here at CERAWeek is palpable, and I am thrilled to sign this order to help another U.S. LNG project advance.” 

The Delfin project, majority-owned by Fairwood Peninsula, Talisman Global Alternative Master, and Talisman Global Capital Master, is seeking to reach a final investment decision later this year and have construction begin on its offshore floating LNG (FLNG) vessel. 

This order extends the commencement date for Delfin’s export authorization for up to 1.8 billion cubic feet per day (bcf/d) of natural gas as LNG to non-free trade agreement countries, prolonging it to June 1, 2029.

Tala Goudarzi, Principal Deputy Assistant Secretary of the Office of Fossil Energy and Carbon Management, pointed out: “With this decision, I am pleased to see DOE help this project progress after the regulatory setbacks it faced during the Biden administration.”

Delfin LNG is a brownfield deepwater port, said to require minimal additional infrastructure investment to support up to four FLNG vessels, producing up to 13.3 million tons of LNG per year. The firm purchased the UTOS pipeline, seen as the largest natural gas pipeline in the Gulf of Mexico/America, in 2014 and submitted its deepwater port license application in 2015.

Delfin LNG received a positive record of decision from the Maritime Administration (MARAD) and approval from the Department of Energy for long-term exports of LNG to countries that do not have a free trade agreement with the United States for up to 13.3 mtpa.

The extension for Delfin marks the fourth LNG-related approval from DOE since President Trump took office, following an export approval to Commonwealth LNG on February 14, an order on rehearing removing barriers for the use of LNG as bunkering fuel announced on February 28, and an approval providing the Golden Pass LNG terminal more time to start exports issued March 5. 

Given the LNG market fundamentals, another U.S. firm, NextDecade, is pondering an additional capacity expansion of its LNG export terminal at the Port of Brownsville, Texas, as LNG is believed to be poised for further growth in demand, driven by the slowdown in clean energy spending, as a result of price volatility and political upheavals.