Delfin Midstream signs LNG SPA with Vitol Inc.

Under the SPA, Delfin will supply 0.5 million tpy on a FOB basis at the Delfin Deepwater Port 40 nautical miles off the coast of Louisiana to VIC for a 15-year period. The SPA is indexed to Henry Hub benchmark. The agreement is valued at approximately US$3 billion in revenue over 15 years.

“Recent events have only accelerated the need for a wider array of potential buyers to source reliable low-cost energy from the safety of the US at compelling prices, and Delfin is perfectly positioned to serve this growing need. After evaluating multiple projects and running an extensive diligence process, Vitol’s decisions to invest demonstrates the strong trust they have in our ability to deliver a reliable source of LNG,” Dudley Poston, CEO of Delfin, said.

In addition to the VIC agreement, Delfin has signed other Heads of Agreements (HoAs) and Term Sheets that are being finalised into fully termed agreements. As a modular project requiring only 2.0 - 2.5 million tpy of long-term contracts to begin construction, Delfin is on schedule to make Final Investment Decisions (FID) on the first floating LNG (FLNG) vessel by the end of this year.

Wouter Pastoor, COO of Delfin, added: “Delfin has completed permitting work with a positive Record of Decision from the Maritime Administration with a 13 million tpy Non-FTA DoE export license. In addition, Delfin has completed DEEF with Samsung Heavy Industries and Black & Veatch which puts us on pace to execute our project this year and to commence operations in 2026.”

Pablo Galante Escobar, Global Head of LNG and European Gas & Power at Vitol, said: “We are delighted to conclude this agreement with Delfin. Global LNG demand is experiencing tremendous growth and Vitol continues to strengthen its position to safely and reliably deliver cost effective, flexible solutions to our customers around the world. Vitol’s commitment and investment grade rating will help Delfin on its path to financial close of this exciting project.”

Carlos Wheelock, Head of LNG Americas for VIC, added: “We have seen extensive changes to the global energy landscape this year, further underscoring the importance of US liquefaction in meeting the world energy needs. Delfin’s innovative solution provides a reliable, low cost alternative for the world’s LNG needs.”

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/14072022/delfin-midstream-signs-lng-spa-with-vitol-inc/