Delfin Midstream adds Gunvor to Delfin Deepwater Port LNG buyers list
Delfin Midstream adds Gunvor to Delfin Deepwater Port LNG buyers list - Offshore Energy
Delfin Midstream adds Gunvor to Delfin Deepwater Port LNG buyers list
US LNG export infrastructure development company Delfin Midstream has entered into a long-term LNG sale and purchase agreement (SPA) with commodity trader Gunvor, extending the list of buyers from the Delfin Deepwater Port LNG export facility.
The agreement will see Delfin supply between 0.5 to 1 million tonnes per annum (mtpa) of LNG to Gunvor on a free-on-board (FOB) basis from the Delfin Deepwater Port, located 40 nautical miles off the coast of Louisiana, for a minimum duration of 15 years.
Commenting on the agreement, Kalpesh Patel, Co-Head of LNG Trading of Gunvor, said: “We continue to support US LNG projects and unlock new sources to meet the growing global LNG demand while further expanding our supply portfolio. We look forward to a successful, long-term relationship with the Delfin LNG team as their project continues to progress.”
Dudley Poston, CEO of Delfin, added: “We are very pleased to have entered into a major long-term LNG supply agreement with Gunvor. This latest sale and purchase agreement further demonstrates our attractiveness as a long-term source of scalable, reliable, and clean LNG.”
The Delfin LNG Deepwater Port project can support four floating LNG (FLNG) vessels with a combined export capacity of up to 13.3 mtpa. Delfin Midstream said it had secured commercial agreements for LNG sales and liquefaction services and is in the final phase toward final investment decision (FID) on its first three FLNG vessels.
In 2023, Delfin signed a binding LNG SPA with Hartree Partners’ unit Hartree Partners Power & Gas Company (UK) Limited for the supply of 0.6 mtpa of LNG to Hartree over a 20-year period.
The company also entered into a 15-year SPA with UK-based energy company Centrica for the sale of 1 mtpa of LNG from the Delfin LNG Deepwater Port project.
Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.