Mitsui OSK Lines (MOL) is taking a stake in floating LNG (FLNG) developer Delfin Midstream giving a boost to the wannabe US producer’s first two floaters.
Delfin said it has inked a strategic investment agreement with MOL that “accelerates growth and drives future expansion”.
Under this MOL will make an investment in Delfin and MOL’s executive officer for energy related business for Europe, Americas and Africa, Suryan Wirya-Simunovic will join Delfin’s board of directors.
The size of the stake MOL is making in Delfin was not made public.
The agreement also allows MOL to make additional investments directly in Delfin’s planned FLNG units and assist in their construction and operation.
Those who follow Delfin closely said the company will use the investment cash to fund the remaining development work until it takes a planned final investment decision on its first FLNG unit.
MOL is will then likely take stakes in the units and have access to LNG offtake from them.
Delfin chief executive Dudley Poston said: “Proceeds from MOL’s investment will be used to accelerate making final investment decisions on our first two FLNG vessels this year.
“Our low-cost, simplified floating liquefaction solution will be significantly enhanced by MOL’s extensive marine expertise,” Poston added.
MOL president and chief executive Takeshi Hashimoto said the new partnership marked “the beginning of a fruitful endeavour together”.
Hashimoto continued: “Drawing on our extensive expertise gained from previous LNG Carrier and FSRU projects and other ventures, we anticipate collaborating with Delfin to successfully drive forward this project toward our initial shared goal of quickly making [a] final investment decision on the first FLNG vessel.”
Delfin said MOL completed extensive due diligence on its entire project.
The company is pursuing a deepwater port project in the US Gulf which could support four FLNG units producing up to 13.3m tonnes per annum (mtpa) of LNG in total.
In April Delfin said it had secured commitments for 3.1 mtpa of LNG sales sufficient to make FID on its first FLNG unit after securing deals with Hartree Partners, Vitol, Centrica and Devon Energy Corp.
The company has said previously that it plans to take FID on its first unit by the end of June or in early July.
Key details:
- Double-hull, ship-shaped newbuilding with modularised topsides
- Self-propelled with azimuthing thrusters
- Two-train liquefier vessel using PRICO single-mixed refrigeration liquefaction technology
- Weathervaning single-point mooring using a disconnectable submerged soft-yoke system
- Double-row, reinforced membrane containment system
- Ship-to-ship offloading using marine loading arms
- Flagged and offshore-classed vessel
