en.Wedoany.com Reported - A subsidiary of US floating liquefied natural gas developer Delfin Midstream has signed a new sale and purchase agreement with UK energy company Centrica to supply LNG from its second floating LNG vessel at the project offshore Louisiana.

According to a filing by Delfin LNG with the US Federal Energy Regulatory Commission on June 18, its subsidiary Delfin FLNG 2 signed the new sale and purchase agreement with Centrica LNG on May 20, with a contract term of 20 years.

Under the contract, the annual supply volume is 13 million MMBtu from the first commercial delivery date through the end of the calendar year of the fifteenth anniversary of the first commercial delivery date; and 2.6 million MMBtu from January 1 of the year following the end of that period through the twentieth anniversary of the first commercial delivery date. Delfin stated that in the first and last contract years, the annual volume will be prorated based on the number of days in that contract year.

In a separate statement released on June 9, Centrica disclosed that the agreement marks a final investment decision for Delfin's first floating LNG vessel and is the first long-term agreement to purchase LNG from Delfin's planned second project (FLNG 2). Under the agreement, Centrica will purchase 250,000 tonnes of LNG annually from FLNG 2 on a free-on-board basis.

Centrica stated that this is based on its purchase commitment in FLNG 1, which increased from 900,000 tonnes to 1.05 million tonnes per year in May. Centrica said that as an existing foundation customer for FLNG 1, this expanded commitment supports Delfin's next phase of development and helps unlock additional supply capacity.

On June 3, Delfin made a final investment decision for the first floating LNG vessel with an annual capacity of 4.4 million tonnes at its development project in Louisiana. Delfin stated that this FLNG is the first floating LNG facility in the US and the largest FLNG in the world. Alongside the $5 billion final investment decision, a group of investors led by BlackRock's Global Infrastructure Partners (GIP)—including Delfin's existing investors, MOL (one of the world's largest LNG fleet owners), commodity trader Vitol, and alternative credit asset manager Diameter Capital Partners—have agreed to invest in the first phase of the infrastructure project.

Delfin stated that its first FLNG 1 has secured long-term LNG sales agreements supported by leading global energy companies including Vitol, Expand Energy, Centrica, and Gunvor. The construction contract for the first FLNG vessel has been signed with South Korea's Samsung Heavy Industries and Black & Veatch.

Delfin's brownfield deepwater port requires minimal additional infrastructure investment and can support up to three FLNG vessels with a total annual capacity of 13.2 million tonnes of LNG. Delfin stated in its final investment decision announcement that the first vessel is planned to begin LNG production in 2030, and the company will continue to actively advance efforts to secure final investment decisions for FLNG 2 and FLNG 3 within the next year.

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