Joint Development Agreement with Hoegh LNG to build first deepwater floating liquefaction terminal offshore U.S.
Houston based Delfin LNG LLC announced a Joint Development Agreement with Höegh LNG (ticker: HLNG) in relation to its U.S.-based Delfin Liquefied Natural Gas Deepwater Port Project, according to the company’s release. The project is a planned floating liquefaction, deepwater port designed to export LNG from the Gulf of Mexico. Delfin hopes that the project will be the first floating deepwater liquefaction project in the United States.
“Floating liquefaction is an attractive option for both producers and customers,” said Delfin President, Frederick Jones. “Floating liquefaction is environmentally friendly, cost competitive, economical with limited scale, movable in the event of a hurricane, and has a shorter and more efficient schedule relative to an onshore plant.” Mr. Jones also said that the project’s ability to move makes it possible to deploy it in alternate locations to meet changing needs in the energy market.
The project is planned to consist of onshore gas compression facilities, a 42-inch pipeline to transport natural gas offshore, and a deepwater port with four moorings and four floating liquefaction vessels.
In February 2014, Delfin LNG received approval from the Office of Fossil Energy of the Department of Energy for exports to FTA countries. The approval encompasses a long-term, multi-contract authorization to export LNG produced from domestic sources in a volume equivalent to approximately 675.5 Bcf/yr of natural gas, or 1.8 Bcf/d. The project is to be located approximately 50 miles offshore of Cameron Parish, Louisana. Delfin LNG has also applied for authorization to export to Non-FTA countries.
Höegh LNG will act as a co-owner, owner’s engineer and operator of the floating liquefaction vessels.
MOU with LITGAS for natural gas supply
On the same day that Delfin announced that it would work jointly with Höegh LNG on its Deepwater Port Project, Delfin also announced that it has signed a memorandum of understanding (MOU) with natural gas supply and trading company LITGAS, part of the Lithuanian state controlled Lietuvos Energija energy company group, according to a Delfin release. Under the terms of the MOU, LITGAS intends to contract processing capacity at Delfin’s deepwater port in the Gulf of Mexico.
“The need for diversification of supply in Europe is critical. As such, Delfin LNG is looking to fill the void by supplying European entities with the diversification they need,” said Jones. “We look forward to continuing the development of the United States’ first floating deepwater liquefaction project.”
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