Delfin Midstream has issued a limited notice to proceed to Siemens Energy for long-lead equipment for its second floating liquefied natural gas (FLNG) vessel offshore Louisiana and signed an agreement with MidOcean Energy that could see the LNG company acquire up to a 50% interest in the project.
The LNTP covers the procurement of four SGT-750 gas turbines and mixed-refrigerant compressors for the proposed FLNG2 vessel and represents a pre-final investment decision (FID) milestone as Delfin targets an FID by the end of 2026.
Separately, MidOcean Energy, an LNG company formed and managed by EIG, entered into an agreement under which it may acquire up to a 50% equity interest in FLNG2 and receive a corresponding share of LNG production, subject to a positive FID and customary closing conditions.
Delfin said FLNG2 will use the same design as its first floating LNG vessel, FLNG1, which reached FID on June 3, 2026, providing schedule and cost certainty.
The companies are also collaborating on pre-development activities for a potential third floating LNG vessel, FLNG3.
FLNG2 is expected to have nameplate production capacity of 4.4 million tonnes per annum (mtpa) and will be moored offshore Louisiana in the Gulf of America, connecting to existing offshore pipeline infrastructure at the Delfin Deepwater Port. Following a positive FID, the project would move to a full notice to proceed and the broader engineering, procurement and construction phase.
"This milestone underscores the commercial readiness of our floating LNG platform, and is another significant step towards global energy security rapidly following a positive FID for Delfin’s FLNG1. Securing manufacturing slots for critical long lead equipment with Siemens Energy is an important advancement in de-risking the project schedule as we work toward FID for the second vessel. We are pleased to partner with MidOcean, whose deep LNG expertise and financial capabilities make them an ideal partner for FLNG2 and beyond," said Dudley Poston, Delfin CEO.
"The issuance of LNTP to Siemens Energy is a tangible demonstration of the momentum behind the FLNG2 project and the strength of our partnership with Delfin. MidOcean's potential participation in FLNG2 is consistent with our strategy to build a diversified, cost-competitive global LNG portfolio.
"The project's repeat-design approach offers an attractive risk-return profile and meaningful execution advantages for all project stakeholders. We look forward to continue working with Delfin toward a final FLNG2 investment decision and to exploring further growth opportunities together, including the acceleration of FLNG3,” added De la Rey Venter, CEO of MidOcean Energy.
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