Delfin LNG: “The geopolitical importance of US LNG has become more evident with Russia’s invasion of Ukraine” (source: Delfin LNG)
US-based LNG developer Delfin LNG has filed an extension request with the US energy commission for the US Gulf of Mexico floating LNG export project
In the filing, published by the US Federal Energy Regulatory Commission (FERC), Delfin LNG’s legal team said the project, which has had three prior year-long extensions granted, had been delayed due to global events.
“Commercial development of its deepwater port project was delayed for a variety of reasons, including impacts of the Covid-19 epidemic, a prior slowdown in market demand for LNG, and complications related to trade with China,” the filing said.
In September 2017, FERC authorised Delfin LNG to undertake the construction of onshore facilities – which consist of around 3 km of pipeline, new compression and related facilities within the boundaries of an existing gas facility, and a new metering and regulation station – to transport and deliver natural gas to Delfin LNG’s planned deepwater port. The port is planned for an area of the US Gulf of Mexico approximately 40 nautical miles off the coast of Cameron Parish, Louisiana.
The initial approval foresaw completion of the project within two years, and the latest request for an extension would push the project’s scheduled completion to September 2023.
Delfin LNG said it had made ’significant progress’ in developing the floating export facility and cited global demand for LNG, and within the European Union in particular, as supporting the case for another extension for the project.
“Currently… the need around the world for additional export of… US natural gas supplies has never been stronger. Furthermore, the geopolitical importance of US LNG has become more evident with Russia’s invasion of Ukraine,” the Delfin LNG filing said.
In the wake of Russia launching a war against Ukraine, the European Commission and the United States Government announced a joint initiative to reduce Europe’s dependence on Russian gas and to increase deliveries of US LNG to Europe.
“The European Commission committed to work toward ensuring growing and stable demand for additional US LNG, while the US commits to maintaining an enabling regulatory environment with procedures to review and expeditiously act upon applications to permit any additional export LNG capacities that would be needed to meet this emergency energy security objective and support the EU’s goals, affirming the joint resolve to terminate EU dependence on Russian fossil fuels by 2027,’” the filing said.
Delfin LNG filed its extension request with the FERC on 15 July. Two days earlier on 13 July, the company announced it had inked a 15-year binding SPA valued at US$3Bn in total for LNG supply to Dutch energy and commodity trader Vitol, with the LNG to come from the Delfin Deepwater Port LNG Export Facility.
“Under the SPA, Delfin will supply 0.5M tonnes per annum on a free on-board basis at the Delfin Deepwater Port for a 15-year period,” Delfin said in a statement.
