U.S. LNG developer Delfin LNG said it plans to make a final investment decision (FID) to go forward with its Gulf of Mexico floating LNG export project off Louisiana in 2022.
“This is the best macro-environment that the LNG business has ever seen,” Delfin CEO Dudley Poston told Reuters this week, noting he was “very confident” the company would make FID this year.
Delfin is one of a dozen or so North American LNG export projects that delayed decisions to start construction in 2020 and 2021 in part because coronavirus demand destruction made customers unwilling to sign enough long-term deals needed to finance the multibillion-dollar facilities.
“We’re now seeing the most sustainable interest from LNG buyers ... that we’ve seen in years and Delfin only needs two to three buyers,” Poston said.
“We’re already in contractual discussions for more than we need for the first vessel. We just need to get a couple of those guys across the line."
Delfin’s project would use existing offshore pipelines to supply gas to up to four vessels that could each produce about 3.5 million tonnes per annum (mtpa) of LNG.
Poston said each vessel would cost about $2 billion with the first expected to enter service around 2026, four years after the FID.
After the first FID, Poston said Delfin would start working on its Avocet project, which would add two more 3.5-mtpa liquefaction vessels.
Recommended Reading
Hot Permian Pie: Birch’s Scorching New Dean Wells in Dawson County
2024-10-15 - Birch Resources is continuing its big-oil-well streak in the Dean formation in southern Dawson County with two new wells IP’ing up to 2,768 bbl/d.
Utica’s Encino Boasts Four Pillars to Claim Top Appalachian Oil Producer
2024-11-08 - Encino’s aggressive expansion in the Utica shale has not only reshaped its business, but also set new benchmarks for operational excellence in the sector.
SM, Crescent Testing New Benches in Oily, Stacked Uinta Basin
2024-11-05 - The operators are landing laterals in zones in the estimated 17 stacked benches in addition to the traditional Uteland Butte.
Now, the Uinta: Drillers are Taking Utah’s Oily Stacked Pay Horizontal, at Last
2024-10-04 - Recently unconstrained by new rail capacity, operators are now putting laterals into the oily, western side of this long-producing basin that comes with little associated gas and little water, making it compete with the Permian Basin.
Northern’s O’Grady: Most of ‘Best’ Acres ‘Already Been Bought’
2024-10-24 - Adding new-well inventory going forward will require “exploration or other creative measures,” said Nick O’Grady, whose Northern Oil and Gas holds interests in 10,000 Lower 48 wells.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.