Delfin Secures LNG Sales Agreement With Vitol

Energy trader Vitol also made an unspecified strategic investment in Delfin Midstream.

Render of an early concept for Delfin's FLNG carrier.

Delfin Midstream has finalized a liquefied natural gas (LNG) sale and purchase agreement with an US affiliate of energy trader Vitol. Under the agreement, Delfin will supply 0.5 mtpa on a free-on-board basis at the Delfin Deepwater Port 40 nautical miles off the coast of Louisiana to Vitol for a 15-year period. The agreement is indexed to Henry Hub benchmark and is valued at approximately $3 billion in revenue over 15 years. In addition to the sale and purchase agreement, Vitol has finalized a strategic investment in the company. Terms of the investment were not disclosed.

“Global LNG demand is experiencing tremendous growth and Vitol continues to strengthen its position to safely and reliably deliver cost-effective, flexible solutions to our customers around the world,” said Pablo Galante Escobar, global head of LNG and European Gas & Power at Vitol. “Vitol’s commitment and investment grade rating will help Delfin on its path to financial close of this exciting project.”

In addition to the Vitol agreement, Delfin has signed other term sheets that are being finalized into fully termed agreements. As a modular project requiring only 2.0 to 2.5 mtpa of long-term contracts to begin construction, Delfin is on schedule to make final investment decision on its first floating liquefied natural gas (FLNG) vessel by the end of this year.

“Delfin has completed permitting work with a positive Record of Decision from the Maritime Administration with a 13-mtpa non-FTA DOE export license,” said Wouter Pastoor, chief operating officer of Delfin. “In addition, Delfin has completed front-end engineering and design with Samsung Heavy Industries and Black & Veatch which puts us on pace to execute our project this year and to commence operations in 2026.”

The Delfin newbuild FLNG vessel design uses the latest gas turbine technology, optimizations of the Black & Veatch’s patented PRICO liquefaction technology, direct air cooling, and waste-heat recovery to achieve maximum fuel efficiency and minimal greenhouse-gas emissions.

Each vessel will be equipped with two offloading facilities to service both large, ocean-going carriers as well as the regional demand for LNG bunkering and small-scale carriers. With ultimately four FLNG vessels in operation, the Deepwater Port project will have four berths for a total of 13 mtpa.