The FEED results will enable Delfin to execute its liquefied natural gas (LNG) project offshore Louisiana for a total capital cost of around $550/tpa

Delfin

Delfin completes FEED for new FLNG vessel. (Credit: Pixabay/D Thory.)

Delfin Midstream (Delfin) has announced the completion of front-end engineering design (FEED) for the newbuild floating liquefied natural gas (FLNG) vessel with 3.5Mtpa capacity for the Louisiana LNG project.

The FEED was completed by Delfin in cooperation with Samsung Heavy Industries and Black & Veatch. The tripatriate cooperation is claimed to have developed a robust, low cost and efficient FLNG vessel design for the Delfin LNG project.

Along with the overall project development activities, the FEED results are expected to enable Delfin to execute its LNG project offshore Louisiana for a total capital cost of around $550/tpa.

Delfin said that each vessel will be equipped with two offloading facilities to service both large, ocean-going carriers along with regional demand for LNG bunkering and small-scale carriers.

Four FLNG vessels at the project are expected to have 13Mtpa of capacity

With four FLNG vessels in operation, the project is expected to have four berths for 13Mtpa, to service the bunkering and small-scale market.

The company further claimed that the newbuild FLNG vessel uses the latest gas turbine technology with optimisations of Black & Veatch’s PRICO liquefaction technology, direct air cooling and waste-heat recovery to bring maximum fuel efficiency and minimal (GHG) emissions.

Simultaneous to the FEED, the parties has also developed a term sheet for a lump-sum, turnkey engineering, procurement, construction, integration and commissioning contract (LSTK EPCIC) as the basis to develop a fully termed agreement.

Delfin CEO Dudley Poston said: “The successful completion of our FEED confirms our ability to offer industry leading pricing of 115% of Henry Hub plus $2.00 for 20 year transactions. The flexibility of a low cost, floating asset also allows Delfin to offer shorter term 10 year deals for 115% of Henry Hub plus $2.40 or flexible tolling structures.

“Delfin continues to advance commercial discussions with multiple buyers and end-users and the completion of our FEED is a major milestone towards the FID of the first Delfin FLNG Vessel.”