Delfin LNG LLC, a Houston-based energy company with plans to build several floating liquefaction vessels and export terminals in Cameron Parish, has hit some bumps but its leadership is still bullish that it will export LNG some day.
In June, Delfin LNG requested a 3-year and 6-month-long extension from the Federal Regulatory Commission for its permit, but was granted a shorter extension that expires in September 2020. That's when the company must have its export facility constructed and in operation.
The Delfin facilities could produce up to 13 million tons of LNG per year across four floating vessels about 50 miles off the Louisiana coast — supplied by pipelines under the Gulf floor.
In 2017, London-based Golar LNG signed a joint development agreement with Delfin LNG, but in late August Golar's CEO told investors that it decided against participating in the Gulf Coast project.
"We just didn't make enough traction around the two critical customer and financing elements," Iain Ross, CEO of Golar told analysts during a conference call. "We need high-caliber customers you can reliably provide fleet gas and put together an uptick that underpins the financing of the project combined with co-investors to lift the project with us. We just didn't feel that the Delfin opportunity satisfied those criteria."
But the chief operating officer of Delfin LNG, Wouter Pastoor, disagrees that the project isn't getting interest from investors.
"We cannot speak to the issues at Golar or the disclosures it has made as part of its earnings announcement, but the Delfin Project is well established and has attracted significant global partners," Pastoor said in a recent email.
Delfin LNG has not yet made a final investment decision for the export facility — though it had initially projected to do so by 2018 — nor has it announced how it would be financing the project.
Pastoor, the COO, noted that the Golar LNG deal was only for one out of four floating LNG vessels planned. Delfin LNG is developing a new construction model with Samsung and Black & Veatch and expects it to be manufactured in Korea. An alternative conversion model would likely be built in China or Singapore.
The company suggested that its unique engineering model will be less expensive to build.
"Delfin LNG continues to see strong interest from LNG buyers for its low-cost, flexible, floating solution," Pastoor said.
Delfin LNG LLC, a Houston-based energy company with plans to build a floating liquefaction vessel and export terminal in Cameron Parish is del…