Delfin LNG and China Gas Holding signed a memorandum of understanding for the purchase of 3 million tons of LNG per year from the proposed project to be located 40 miles offshore Louisiana in the Gulf of Mexico.
The MoU is a preliminary framework agreement, China Gas Holding said in a filing o the stock exchange, adding that a legally binding agreement for the sale and purchase of LNG is subject to further negotiation between the two companies.
Delfin LNG, owned by Fairwood Peninsula Energy Corp, is the first and only permitted floating LNG export project in the United States.
In June this year, Delfin LNG joined forces with LNG shipper Golar to jointly develop the FLNG project.
The project includes up to four floating liquefaction vessels capable of producing up to 13 million tons of LNG per year.
A final investment decision for the first FLNG is expected in 2018, with the first production from the project planned for 2021 or 2022.
However, speaking to Reuters, Delfin founder and CEO Frederick Jones noted that 2018 is a challenging deadline and that the company is looking to bring in Chinese investors onboard the $8 billion project.
LNG World News Staff