Delfin Midstream took a final investment decision (FID) June 3 on the first vessel of its Delfin LNG project, the first US floating LNG (FLNG) facility to reach FID.
Delfin FLNG 1 is a 4.4 Mtpa project (~0.6 Bcf/d of feedgas) sited in the Gulf offshore Louisiana. The project will take supply through the repurposed UTOS offshore pipeline. A Global Infrastructure Partners-led group, alongside MOL, Vitol and Diameter Capital, is funding the ~$5B first phase.
The partners have secured long-term offtake with Vitol, Expand Energy, Centrica and Gunvor, with first production targeted for 2030. FID covers only the first of three planned vessels. The Department of Energy has authorized up to 13.2 Mtpa, and Delfin is guiding to FIDs on the second and third vessels over the coming year. At full build, the facility would create ~1.8 Bcf/d of feedgas demand.
Delfin lands amid a wave of commercial progress for Louisiana-based LNG projects. Commonwealth LNG recently made FID on the 9.5 Mtpa facility, and Venture Global (VG) is advancing bolt-on expansions at Plaquemines (~6.4 Mtpa, FID targeted mid/late 2027, first production ~2029) and CP2 (~6.4 Mtpa, FID early 2027, first production late 2028), and has designs on additional expansions at both locations. Cheniere Energy (LNG) is also working to commercialize the Stage 5 expansion at the Sabine Pass Liquefaction facility.
These projects are solving for feedgas links. Commonwealth closed its midstream gap with WhiteWater’s newly announced Pelican Thrasher lateral; it includes 65 miles of 42-inch pipe originating at Gillis and is rated to transport up to 2.5 Bcf/d in 1H29. But that is last-mile capacity. As more of these projects reach FID, capacity into Gillis becomes the binding constraint.
East Daley Analytics’ ‘LNG Tracker’ dashboard in Energy Data Studio puts total US liquefaction near 40 Bcf/d by 2032, more than half of which is concentrated near Gillis (see figure above). Against this backdrop, each greenfield or bolt-on FID adds feedgas pull and, absent new inbound capacity to the Gillis corridor, will considerably tighten the outer-year balance.
See East Daley’s ArkLaTex Supply & Demand report for more on Louisiana LNG developments and analysis of the Gillis market. – Oren Pilant Tickers: LNG, VG.
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