Floating shale gas LNG producer moving ahead with build out plans

By Luke Geiver | October 29, 2019

Delfin Midstream has furthered its floating approach to liquified natural gas processing. The Houston-based company announced this week that after working with Samsung Heavy Industries and Black & Veatch in early 2019 on a concept to design and develop a floating LNG vessel suited for the Gulf of Mexico, the company is now moving forward with plans to construct and buildout the vessel.

According to Delfin, many land-based LNG export projects seek ‘economies-of-scale’ to lower their costs by developing 10 to 20 million metric tons per annum projects. By re-purposing existing offshore pipelines and building the FLNG Vessels at efficient, low-cost Asian shipyards, Delfin can achieve total capital costs around $500 to $550 Tpa for just 3.5 Mtpa FLNG Vessels. The company added that each FLNG Vessel can be developed independently with its own commercial and financial structure. This enables Delfin to offer standard tolling models with terms of 10 to 25 years, integrated structures or JV arrangements with offtakers, producers and/or traders. Delfin’s existing offshore pipelines connect directly to the extensive network of onshore pipeline systems, with ample supply capacity for the first 2 to 3 FLNG Vessels.

“The two most important innovations of the last 20 years in the global gas market have been the shale gas revolution and the emergence of floating LNG technologies for regasification and liquefaction. Delfin combines these two innovations to offer the LNG market a low cost, simple and flexible LNG supply solution,” said Dudley Poston, CEO of Delfin.

Samsung Heavy Industries was established in 1974 and is today one of the largest ship builders in the world.

The design and engineering work on the FLNG vessel is expected to be complete by mid-2020.