European energy company SEFE has signed a deal to receive 1.5 million tonnes of US liquefied natural gas (LNG) per annum from Texan LNG specialist Delfin Midstream.
Just yesterday, the US Department of Transport Maritime Administration issued a licence authorising Delfin LNG to own, construct, operate, and eventually decommission a deepwater port to export liquefied natural gas (LNG) from the US. It marks the country’s first offshore LNG export project.
Now given the green light for the project, Delfin will supply SEFE from its floating LNG (FLNG) vessels, which will produce up to 13.2 million tonnes of LNG per annum.
The vessels are deployed 40 miles offshore from Cameron, Louisiana, on the US Gulf Coast. Delfin LNG is a brownfield deepwater port requiring minimal additional infrastructure investment to support the FLNG vessels.
Frederic Barnaud, CEO of SEFE, said the deal would diversify the company’s LNG sourcing portfolio.
“This […] ensures the security of supply for SEFE’s customers in Europe and around the world,” he added.
The free-on-board deliveries will start once the FLNG units have been built and commissioned. Deliveries will happen for at least 15 years.
Earlier this month, US Secretary of Energy Chris Wright approved an LNG permit extension for Delfin LNG, allowing extra time to begin exports from the proposed project.
The new commencement date for Delfin’s export authorisation is 1 June 2029.
