Delfin LNG in SPA with UK’s Hartree Partners

Delfin Midstream said April 24 its Delfin LNG subsidiary had entered into a binding LNG sale and purchase agreement (SPA) with UK power company Hartree Partners Power & Gas for 600,000 metric tons/year from the proposed Delfin Deepwater Port off the coast of Louisiana.

Under the 20-year SPA, Delfin LNG will supply the LNG from the first of four floating LNG vessels that will comprise the Delfin Deepwater Port, which will have a total liquefaction capacity of about 13.3mn mt/yr. LNG will be indexed to Henry Hub and sold on a free-on-board basis.

Alongside earlier LNG supply agreements with the UK’s Centrica and the US subsidiary of Swiss trading house Vitol, Delfin said it has now secured commitments for 3.1mn mt/yr from the first FLNG vessel. It expects to make its first final investment decision (FID) in mid-2023.

“The signing of this long-term SPA with Hartree represents another significant milestone for our company and signifies the beginning of a strong, mutually beneficial relationship with a world-class trading company such as Hartree,” Delfin CEO Dudley Poston said. “The Delfin project’s ability to make FID one vessel at a time is attracting significant interest from buyers, and Delfin is already in advanced discussions for marketing LNG for its second FLNG vessel.”

Citi has been retained as Delfin’s exclusive financial structuring advisor and is “well advanced” in securing project level debt and equity financing for the first vessel.

“With strong commercial and financial progress, Delfin is finalising construction contracts for multiple identical liquefier vessels which will offer material cost savings and position us to make FID on our second FLNG vessel by the end of this year,” Delfin COO Wouter Pastoor said.