Delfin seeks extension until September 2023 to build Gulf of Mexico LNG export facility

WCN Editorial Team 22 Jul 2022 NORTH AMERICA TRANSPORT INFRASTRUCTURE

Delfin LNG, a US-based liquefied natural gas (LNG) developer, has sought extension of time from the federal regulators until September next year for it to put into service the onshore facility of its proposed Gulf of Mexico floating LNG export project, to be located off Louisiana, reported Reuters.

The US Federal Energy Regulatory Commission (FERC) stated that Delfin sought for more time on 15 July.

Construction of several export projects are being delayed in the US partly due to coronavirus destroying demand, which made customers reluctant to signing long term agreements to fund multibillion-dollar facilities.

Presently, eight firms are expecting to take final investment decisions this year to construct their facilities in Canada, the US, or Mexico.

Most these projects have been delayed for years.

In 2017, Delfin was authorised by FERC to put its project into service by September 2019. However, since then, the regulatory commission had given three one-year extensions to Delfin to finish the project.

As per the last extension, Delfin was required to put the project in service in September this year.

In its latest request to FERC, Delfin stated that the LNG market "is strong with the current geopolitical importance of the Ukraine invasion and the initiative of the European Union to increase deliveries of U.S LNG to Europe."

Earlier in July, the company agreed to sell 0.5 MTPA of LNG to a unit of Vitol for a period of 15 years.

The company’s project would leverage existing offshore pipelines to transport gas to up to four vessels, with each costing $2bn and having the capacity to produce about 3.5MTPA of LNG.

Furthermore, the company stated that the first vessel is expected to enter service in around 2026, four years after the final investment decision.
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Image: Eight firms are expecting to take final investment decisions this year to construct their facilities in Canada, the US, or Mexico. Credit: LEEROY Agency from Pixabay.

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