U.S. gives nod for exports from offshore LNG terminal

The U.S. Department of Energy has approved a long-term application to export liquefied natural gas (LNG) from the first offshore project, Delfin LNG, LLC (Delfin).

Exports in the amount of 1.8 billion cubic feet per day (Bcf/d) of natural gas are approved from Delfin’s proposed offshore Louisiana floating LNG terminal in the Gulf of Mexico.

Development of the Delfin project offshore of Cameron Parish, Louisiana will include the construction of floating liquefaction and storage vessels. Due to its offshore location, the environmental review of Delfin was led by the Maritime Administration (MARAD) and the U.S. Coast Guard.

U.S. Secretary of Energy Rick Perry said: “I am pleased that with this authorization the Administration can continue to strengthen the United States as a dominant energy force with further exports of our abundant amounts of natural gas. Investing in American natural gas not only helps our economy and our jobs, but also helps our allies maintain their energy security. This represents a true win-win for everyone involved.”

The Energy Department said it conducted an extensive review of the Delfin LNG, LLC application. Among other factors, the Department said considered the economic, energy security, and environmental impacts, including macroeconomic studies that showed positive benefits to the U.S. economy in scenarios with LNG exports up to 28 Bcf/d.

The Department determined that exports from the Delfin LNG terminal, jointly owned by the India and Singapore-based Fairwood Group and the U.S.-based Peninsula group, for a period of 20 years, was not inconsistent with the public interest.