US Secretary of Energy Chris Wright today approved a liquefied natural gas (LNG) export permit extension for Delfin LNG, granting additional time to commence exports from the project, which is proposed for offshore Louisiana.
Today’s order extends the commencement date for Delfin’s export authorisation to 1 June 2029. This is 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.
The extension, which had been delayed by the Biden-Harris administration, was announced by Secretary Wright in his opening remarks at the energy conference CERAWeek in Houston.
Secretary Wright said he was advancing a strategy of “energy addition, embracing all forms of energy that are affordable, reliable and secure”.
Source: Delfin LNG
The issuance to Delfin marks the fourth LNG-related approval from the US Department of Energy (DOE) since President Trump took office, following an export approval to Commonwealth LNG on 14 February, an order on removing barriers for the use of LNG as bunkering fuel announced on 28 February, and a 5 March approval giving the Golden Pass LNG terminal more time to commence exports.
Tala Goudarzi, Principal Deputy Assistant Secretary of the Office of Fossil Energy and Carbon Management, said she was pleased to see the Department of Energy help the project progress.
Delfin, majority-owned by Fairwood Peninsula, Talisman Global Alternative Master, and Talisman Global Capital Master, is seeking to reach a final investment decision later this year, in order to have construction begin on its offshore floating liquefied natural gas vessel (FLNGV).
Delfin LNG is a brownfield Deepwater Port requiring minimal additional infrastructure investment to support up to four FLNG Vessels producing up to 13.3 million tonnes per annum.
Delfin purchased the UTOS pipeline, the largest natural gas pipeline in the Gulf of Mexico, in 2014. It submitted its Deepwater Port licence application in 2015.
Last month Chesapeake Energy, Delfin LNG and Gunvor signed a long-term LNG liquefaction offtake agreement, whereby Chesapeake will buy 0.5 mtpa from Delfin at a Henry Hub price and contracted start date in 2028, then deliver to Gunvor on an FOB basis, with the sale price linked to the Japan Marker for 20 years.
