US LNG export developer Delfin Midstream has entered into a letter of award (LOA) with Samsung Heavy Industries (SHI), notifying the South Korea shipbuilder that is has been selected and awarded as the exclusive engineering, procurement, construction, and installation (EPCI) contractor for the first FLNG vessel of the Delfin LNG project and that Delfin is entitled to the exclusive rights to SHI’s dock for construction of the first FLNG vessel.
As part of the LOA, Delfin and Samsung have agreed to commence an early engagement scope of work, mobilize project teams, de-risk the overall project schedule and prepare for imminent execution.
Delfin said on Thursday that the announcement further secures the path towards a final investment decision (FID) in November for its US energy infrastructure project offshore Louisiana.
Given the progress towards an FID for the first FLNG vessel and excellent collaboration among all the project stakeholders, the parties have agreed to strengthen their partnership in advance of the second and third FLNG vessels for the Delfin project, the company revealed.
Under the LOA, Delfin and Samsung have agreed a dock reservation scheme for the second FLNG vessel for the Delfin project following FID of the first FLNG vessel, which will enable Delfin to take an FID in early 2026 for the second FLNG vessel.
For the third FLNG vessel, Delfin and SHI plan to jointly develop strategic business and trade opportunities, including shipbuilding cooperation.
Earlier this year, Delfin secured the manufacturing capacity for the FLNG vessel’s gas turbines from Siemens Energy Inc and since then it has significantly progressed both its debt and equity financing, Delfin added in its statement.
“We are very pleased with the commercial and financing workstreams closing in for an FID on the Delfin LNG project,” noted Delfin chief executive officer Dudley Poston. “With this LOA we further strengthen our construction pathway, not just for the first but also the second and third FLNG vessels.”
