Delfin LNG, the company behind the floating export development in the Gulf of Mexico, is struggling to secure offtake deals for its 13 mtpa project.
Image: Delfin Midstream
The unit of Delfin Midstream has last year sought and won a 1-year extension from US FERC to build the project’s onshore facilities.
It also pushed its financial investment decision for one year to 2020 and entered into pre-FEED deals for newbuild FLNG vessel with units of Samsung Heavy and Black & Veatch.
In a new move, Delfin LNG is seeking from FERC an additional 1-year extension to build the project’s onshore faclities.
According to a FERC notice, the company is having difficulties to attract LNG buyers citing “global coronavirus pandemic, U.S. trade disputes with China, and the drop in global oil prices”.
Delfin said it continues to negotiate LNG offtake deals and requests an extension of time until September 28 next year to complete construction of the onshore facilities and place them into service.
The onshore facilities include metering, compression, and piping facilities located in Cameron Parish, Louisiana.
These will transport and deliver natural gas to Delfin LNG’s deepwater port in federal waters offshore Louisiana.
Delfin initially partnered with Golar LNG for the development but the latter backed out of the FLNG project last year.
The US company plans to install up to four FLNG vessels that could produce up to 13 mtpa of LNG or 1.7 billion cubic feet per day of natural gas.
It previously said that LNG production should start in the second half of 2023.
Delfin is also developing the 8 mtpa Avocet LNG project with slots for two additional FLNG vessels.
The post US floating LNG export project struggling to lock in buyers appeared first on Offshore Energy.
Source: LNG World News