Delfin reaches FID on first FLNG vessel, advancing U.S. floating LNG exports

Image: Delfin Delfin Midstream said it has reached a final investment decision (FID) on the first floating liquefied natural gas (FLNG) vessel for its offshore Louisiana export project. (Image: Delfin)

Delfin Midstream has reached a final investment decision (FID) on the first floating liquefied natural gas (FLNG) vessel for its offshore Louisiana export project, marking a significant milestone for one of the most closely watched LNG developments in the United States.

The company said Delfin FLNG 1 will be the first floating liquefaction facility deployed in the United States and will have an export capacity of 4.4 million metric tons per year (MTPA). The vessel is scheduled to begin LNG production in 2030.

The FID covers approximately $5 billion of investment and is backed by a consortium led by Global Infrastructure Partners (GIP), part of BlackRock, along with existing investors Mitsui O.S.K. Lines (MOL), Vitol and Diameter Capital Partners.

For the LNG and gas compression sectors, the decision represents a major step forward for floating liquefaction technology in North America. Unlike traditional onshore LNG export terminals, Delfin’s development utilizes floating liquefaction vessels connected to existing pipeline infrastructure, reducing the need for large-scale onshore facilities while providing flexibility in project execution.

Delfin CEO Dudley Poston described the FID as a milestone for both the company and the broader LNG industry.

“Securing FID for our first FLNG vessel is a groundbreaking milestone not only for Delfin, but also for global energy security,” Poston said.

The project has already secured long-term LNG sales agreements with several major energy companies, including Vitol, Expand Energy, Centrica and Gunvor, providing a commercial foundation for the first vessel.

Delfin also said all necessary permits and licenses required to begin construction have been obtained, removing a major source of development risk that has challenged many LNG projects in recent years.

Construction contracts for the first vessel have been awarded to Samsung Heavy Industries and Black & Veatch. Samsung will be responsible for vessel construction, while Black & Veatch will provide engineering expertise and liquefaction technology for the project.

The FID follows several years of engineering work and project optimization. Earlier this year, Delfin disclosed that the FLNG vessels would utilize gas turbine-driven liquefaction systems and air-cooling technology while incorporating emissions-reduction measures intended to improve efficiency and reduce environmental impacts.

The project is particularly relevant to the compression industry because floating LNG facilities require extensive turbomachinery and refrigeration compression systems to liquefy natural gas. Previous project announcements indicated the development would utilize Siemens Energy gas turbine technology to drive liquefaction operations.

According to Delfin, the first vessel represents only the initial phase of a larger development. The company has received authorization from the U.S. Department of Energy to export up to 13.2 MTPA of LNG annually and is already advancing plans for additional FLNG vessels.

With the first vessel now sanctioned, management said efforts will focus on securing FIDs for FLNG vessels two and three during the coming year.