Delfin Midstream said Wednesday it is moving ahead with a second floating LNG export vessel off the Louisiana coast, issuing a Limited Notice to Proceed to Siemens Energy for four SGT-750 gas turbines and mixed refrigerant compressors. The Houston based developer said locking in the equipment ahead of a final investment decision is intended to preserve manufacturing capacity and reduce schedule risk.
MidOcean Energy, the LNG company formed and managed by EIG, has signed agreements that could see it acquire up to a 50% equity stake in the FLNG2 project. In return MidOcean would receive a corresponding share of LNG production from the facility, subject to a positive final investment decision and customary closing conditions.
FLNG2 will match the 4.4 million tonnes per annum design of FLNG1, the first vessel that Delfin sanctioned in early June with roughly $5 billion committed to phase one. Both vessels will use the same Siemens Energy liquefaction package, and Delfin expects the repeat design to shorten construction timelines and reduce execution risk.
The announcement follows a federal appeals court ruling that dismissed a legal challenge to the project's deepwater port license, clearing another hurdle for the long planned offshore development. Delfin and MidOcean said they are also collaborating on development work for a potential third vessel, FLNG3.
Located about 40 miles off the Louisiana coast, the Delfin project would become the first offshore LNG export terminal in U.S. waters, connecting floating liquefaction vessels to existing offshore natural gas pipeline infrastructure rather than building an onshore facility. Once all three planned vessels are in service, the project is expected to export up to 13.2 million tonnes of LNG annually.