According to a statement by Delfin, the LOA formally notified SHI that it has been selected and awarded as the exclusive EPCI contractor for the first FLNG of the Delfin LNG project, while Delfin is entitled to the exclusive rights to SHI’s dock for construction of the first FLNG.
As part of the LOA, the two firms have agreed to commence an early engagement scope of work, mobilize project teams, de-risk the overall project schedule and prepare for imminent execution.
Earlier in 2025, Delfin already secured the manufacturing capacity for the FLNG vessel’s gas turbines from Siemens Energy.
Since then, the Delfin said it has “significantly” progressed both its debt and equity financing.
“Today’s announcement further secures the path towards FID in November 2025 for Delfin’s leading US energy infrastructure project offshore Louisiana,” the firm said.
Two more FLNGs
Delfin said its 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.
The Delfin floating LNG project has the potential to not only be the first LNG export deepwater port facility in the US, but a “significant economic contributor and job creator over the long-term.”
Given the progress towards an FID for the first FLNG and “excellent” collaboration among all the project stakeholders, Delfin said the parties have agreed to strengthen their partnership in advance of the second and third FLNG for the Delfin project.
Under the LOA, the parties have agreed a dock reservation scheme for the second FLNG for the Delfin project following FID of the first FLNG which will enable Delfin to take an FID in early 2026 for the second FLNG.
For the third FLNG, Delfin and SHI plan to jointly develop strategic business and trade opportunities, including shipbuilding cooperation.
“We are very pleased with the commercial and financing workstreams closing in for an FID on the Delfin LNG project,” Dudley Poston, Delfin CEO, said.
“With this LOA, we further strengthen our construction pathway, not just for the first but also the second and third FLNG vessels. Finally, we are excited that the Delfin project can foster increased cooperation in trade, energy, and shipbuilding between the Republic of Korea and the USA,” he said.
Extension, deals
In June, Delfin sought an additional extension from the US Department of Energy.
Moreover, Delfin requested that DOE amends its non-FTA export authorization to allow it to start commercial non-FTA exports of LNG by June 1, 2031, providing an additional two-year extension of time beyond that granted by DOE.
In March this year, Delfin LNG, a unit of Delfin Midstream, secured a five-year permit extension from DOE.
This extended the start date for Delfin’s export authorization for exports of up to 1.8 billion cubic feet per day (Bcf/d) of natural gas as LNG to non-free trade agreement countries to June 1, 2029.
As per supply contracts, Delfin signed a heads of agreement with German gas importer SEFE to supply the latter with LNG in March this year.
The HoA is for the long-term supply of 1.5 million tonnes of LNG per year for at least 15 years.
Besides this deal with SEFE, Delfin signed an agreement last year with US shale gas producer Chesapeake Energy to supply LNG to Geneva-based trader Gunvor.
Under the SPA, Chesapeake will buy about 0.5 million tonnes per annum (mtpa) of LNG from Delfin at a Henry Hub price with a targeted start date in 2028.
These volumes will represent 0.5 mtpa of the previously announced up to 2 mtpa heads of agreement with Gunvor, Delfin said.
Also, these volumes will add to the SPA Gunvor signed with Delfin in November 2023.
