Delfin LNG told the US FERC in a filing dated June 18 that its unit Delfin FLNG 2 has entered into a new LNG sale and purchase agreement with Centrica LNG on May 20.
According to Delfin, the contract is for 20 years.
Moreover, the annual contract quantity is equal to 13,000,000 MMBtu from the date of first commercial delivery to the end of the calendar year in which the fifteenth anniversary of the date of first commercial delivery falls, and 2,600,000 MMBtu from January 1 that immediately follows that period to the twentieth anniversary of the date of first commercial delivery, it said.
“For the first and final contract years, the annual quantities shall be pro-rated based on the number days in that contract year,” Delfin said.
Centrica also revealed the new agreement in a separate statement posted on its website on June 9, marking the final investment decision (FID) of Delfin’s first FLNG.
The firm said this is the first long-term agreement to purchase LNG from Delfin’s planned second project (FLNG 2).
Under the agreement, Centrica will offtake 0.25 million tonnes per annum of LNG on a free-on-board basis from FLNG 2.
This builds on Centrica’s offtake commitment in FLNG 1 which was increased from 0.90 to 1.05 mtpa in May, Centrica said.
As an existing foundation customer of FLNG 1, this expanded commitment supports the development of Delfin’s next phase and helps unlock additional supply capacity, Centrica said.
World’s largest FLNG
On June 3, Delfin took a final investment decision for the first 4.4 mtpa floating LNG unit of its LNG project under development in Louisiana.
Delfin says the FLNG is the first floating liquefaction facility in the United States and the world’s largest FLNG.
Concurrent with the $5 billion FID, a group of investors led by Global Infrastructure Partners (GIP), a part of BlackRock, including existing Delfin investors MOL, owner of one of the world’s largest fleets of LNG carriers, commodity trader Vitol, and alternative credit asset manager Diameter Capital Partners have agreed to invest in the first phase of this infrastructure project.
Delfin said its first FLNG 1 is backed by long-term LNG sales agreements with “leading” global energy companies, including Vitol, Expand Energy, Centrica, and Gunvor.
Additionally, construction contracts for Delfin’s first FLNG vessel have been executed with South Korea’s Samsung Heavy Industries and Black & Veatch.
Delfin’s brownfield deepwater port requires minimal additional infrastructure investment to support up to three floating LNG vessels producing up to 13.2 million tonnes of LNG annually.
“With the first vessel scheduled to begin LNG production in 2030, the company continues to diligently advance towards securing FIDs for FLNG vessels two and three over the coming year,” Delfin said in the FID announcement.
