Delfin Advances Second Floating LNG Vessel Off U.S. Coast

Delfin Midstream is moving ahead with plans for its second floating LNG export vessel off the Louisiana coast, announcing a new partnership with MidOcean Energy and authorizing the purchase of critical long-lead equipment as it works toward a final investment decision later this year.

The Houston-based developer said Wednesday it has issued a Limited Notice to Proceed (LNTP) to Siemens Energy for key equipment for its proposed FLNG2 vessel, including four SGT-750 gas turbines and mixed-refrigerant compressors. Securing the equipment ahead of a final investment decision is intended to reduce schedule risk and preserve manufacturing capacity.

At the same time, MidOcean Energy, the LNG company formed and managed by EIG, has signed agreements that could see it acquire up to a 50% equity stake in the FLNG2 project, subject to a positive final investment decision (FID) and customary closing conditions. In return, MidOcean would receive a corresponding share of LNG production from the facility.

The announcement builds on Delfin’s momentum after the company reached FID on its first U.S. floating LNG vessel, FLNG1, in early June. That decision unlocked approximately $5 billion for the first phase of what is expected to become the first offshore LNG export terminal in U.S. waters.

Like FLNG1, the second vessel will have an expected production capacity of 4.4 million tonnes per annum (mtpa) and will use the same Siemens Energy liquefaction equipment. By repeating the design, Delfin expects to shorten construction timelines and reduce execution risk.

The vessel is planned to operate offshore Louisiana at the Delfin Deepwater Port, where it will connect to existing offshore natural gas pipeline infrastructure as part of the project’s phased development.

Delfin CEO Dudley Poston said securing the Siemens Energy equipment represents another step toward bringing the second vessel to FID.

“This milestone underscores the commercial readiness of our floating LNG platform,” Poston said. “Securing manufacturing slots for critical long lead equipment with Siemens Energy is an important advancement in de-risking the project schedule as we work toward FID for the second vessel.”

MidOcean CEO De la Rey Venter said the company views the project as consistent with its strategy of building a diversified global LNG portfolio.

“The project’s repeat-design approach offers an attractive risk-return profile and meaningful execution advantages for all project stakeholders,” Venter said.

Beyond FLNG2, the companies said they are also collaborating on development work for a potential third floating LNG vessel, FLNG3.

The latest announcement comes just weeks after Delfin approved the first phase of the project and days after a federal appeals court dismissed a legal challenge to the project’s deepwater port license, removing another hurdle for the long-planned offshore LNG development.

Located about 40 miles off the Louisiana coast, the Delfin project will rely on floating liquefaction vessels connected to existing offshore pipeline infrastructure rather than constructing a traditional onshore LNG export terminal. Once all three planned vessels are in service, the project is expected to export up to 13.2 million tonnes of LNG annually.

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