Dallas: Delfin LNG has announced the signing of a joint development agreement with Höegh LNG to establish the first floating deepwater liquefaction project in the United States.
The project will be located at the Delfin Liquefied Natural Gas Deepwater Port Project in the Gulf of Mexico, and used for the exportation of LNG. The Delfin LNG Project consists of plans for onshore gas compression facilities, a 42-inch pipeline to transport natural gas offshore, and a deepwater port with four moorings and four floating liquefaction vessels. Höegh LNG will act as a co-owner, engineer and operator of the vessels.
Frederick Jones, president of Delfin, commented: “In an unpredictable and dynamic energy market, floating liquefaction is an extremely attractive option for both producers and customers. Floating liquefaction is environmentally friendly, cost competitive, economical with limited scale, moveable in the event of a hurricane, and has a shorter and more efficient schedule relative to an onshore plant. Furthermore, in the event global energy markets drastically change in the coming decades a floating liquefaction plant can be deployed in alternate locations, which provides floating liquefaction vessel owners the flexibility to be in a position to serve a more diverse pool of customers with shorter duration contracts.”
Sveinung J.S. Støhle, ceo and president of Höegh LNG, added “We are very pleased to have reached this agreement with Delfin LNG for a project that satisfies all the necessary criteria in Höegh LNG’s FLNG strategy; a credit worthy counterparty, pipeline specification gas from the U.S. market and a regulatory scheme which the company is very familiar with.”