Delfin Midstream said the FEED work for its 3.5 mtpa FLNG vessel to be deployed at the Delfin LNG project is complete.
The company further noted it is developing a robust FLNG in cooperation with Samsung Heavy Industries and Black & Veatch.
The FEED results together with the overall project development activities enable the company to execute the project for a total capital cost of around 550 $/tpa, the company said in its statement.
To remind, Delfin LNG is developing infrastructure with up to four FLNG vessels producing up to 13 million tonnes of LNG per annum in the Gulf of Mexico.
Each FLNG vessel can be developed independently, with its own commercial and financial structure, which allows Delfin to be at the lower end of the global LNG cost curve combined with the lowest FID threshold of 2.0 to 2.5 mtpa firm offtake.
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 project will have four berths for 13 mtpa, which provides operational flexibility to service the bunkering and small-scale market.
In parallel to the FEED the parties have developed a Term Sheet for a lump-sum, turnkey engineering, procurement, construction, integration and commissioning contract (LSTK EPCIC) as a basis for the development of a fully termed agreement.
Commenting of the company’s progress Delfin CEO Dudley Poston said, “Delfin continues to advance commercial discussions with multiple buyers and end-users and the completion of our FEED is a major milestone towards the FID of the first Delfin FLNG vessel.”
Wouter Pastoor , COO of Delfin, added, “Recent hurricane activities in the Gulf of Mexico have highlighted the importance of sound design and operational measures to minimize potential downtime of LNG export facilities. The Delfin project is uniquely different since the FLNG Vessels are self-propelled and use a disconnectable, mooring solution to allow the FLNG vessel to sail away if a severe hurricane passes over the site.”
He added that the same technology and operational procedures have been used for decades on oil FPSOs in tropical storm locations.