Delfin advances FLNG2 toward FID with MidOcean, Siemens agreements

Delfin Midstream has advanced development of its second floating liquefied natural gas (FLNG) vessel offshore Louisiana by bringing in MidOcean Energy as a strategic partner and authorizing procurement of long-lead equipment ahead of a targeted final investment decision (FID) later this year.

Under an agreement announced Wednesday, MidOcean Energy—an LNG company formed and managed by EIG—can acquire up to a 50% equity interest in the FLNG2 project, subject to a positive FID and customary closing conditions. MidOcean would also receive a corresponding share of LNG production from the facility.

Separately, Delfin issued a Limited Notice to Proceed (LNTP) to Siemens Energy for the procurement of critical long-lead equipment, including four SGT-750 gas turbines and mixed-refrigerant compressors, a key milestone as the project advances toward FID.

FLNG2 will utilize the same design as Delfin’s FLNG1 vessel, which reached FID in June and is currently under development. The repeat-design approach is expected to reduce execution risk, improve schedule certainty and lower development costs.

“This milestone underscores the commercial readiness of our floating LNG platform and is another significant step toward global energy security,” said Dudley Poston, chief executive officer of Delfin. “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.”

The FLNG2 vessel is expected to have a nameplate capacity of 4.4 million tonnes per annum (MMtpa) and will be moored offshore Louisiana, connecting to existing infrastructure at the Delfin Deepwater Port.

MidOcean CEO De la Rey Venter said the company’s potential participation in FLNG2 aligns with its strategy to build a diversified global LNG portfolio, adding that the repeat-design approach offers significant execution and cost advantages.

The companies also said they are collaborating on pre-development activities for a potential third floating LNG vessel, FLNG3, reflecting plans to expand Gulf Coast LNG export capacity beyond the first two projects.