Golar LNG and Delfin Midstream sign agreement to jointly develop the Delfin LNG Project in the US Gulf of Mexico
June 21 2017 - 7:55AM
LONDON, June 21st, 2017 - Delfin Midstream
("Delfin"), and Golar LNG Limited ("Golar"), announce that they
have signed a Joint Development Agreement to develop the Delfin LNG
project ("Delfin LNG"), off the coast of Cameron Parish, Lousiana
utilising Golar's FLNG technology. The joint development
agreement will facilitate the financing, marketing, construction,
development and operation of Delfin LNG.
Delfin LNG is the first and only permitted
floating LNG export project in the United States. Delfin LNG
is a brownfield Deepwater Port requiring minimal additional
infrastructure investment to support up to four FLNG vessels
producing up to 13 million tonnes of LNG per annum. Delfin
purchased the UTOS pipeline, the largest natural gas pipeline in
the Gulf of Mexico, in 2014 and submitted its Deepwater Port
license application in 2015. Delfin LNG received a positive
record of decision from MARAD on March 13th, 2017. On June 1st 2017
Delfin received approval from the Department of Energy for
long-term exports of LNG to countries that do not have a Free Trade
Agreement with the United States.
Golar has successfully designed, financed,
contracted, and built its first FLNG vessel, the FLNG Hilli
Episeyo, which is scheduled to sail away from Keppel shipyard in Q3
2017. A second vessel of the same FLNG design, the FLNG Gandria, is
soon to be converted subject to a Final Investment Decision ("FID")
by the Fortuna project partners. Golar is currently developing
the Mark II next-generation floating liquefaction solution that is
based on its industry leading Hilli and Gandria designs. The
Mark II solution, as used at the Delfin LNG project, will have
>3.0 mmtpa of liquefaction capacity and will be the lowest cost
liquefaction solution in North America.
It is expected that FID on the Delfin project
will take place in 2018 with first LNG to be delivered in 2021/22.
Delfin LNG is uniquely positioned in the North American LNG
market as a proven low cost solution, modular, scalable, requiring
limited additional investments in fixed infrastructure, and having
already completed its environmental permitting and received Non-FTA
export authorizations.
Oscar Spieler, Chief Executive of Golar,
commented: "Golar's proven execution model will allow Delfin
to deliver the lowest cost liquefaction solution in the North
American market with a construction time of less than 3 years.
Golar's low cost modular floating technology will allow Delfin to
make Final Investment Decisions in 3.0 mmtpa increments at a lower
unit cost than large land-based projects."
Frederick Jones, CEO and Chairman of Delfin
commented: "We look forward to working with Golar to deliver the
first floating liquefaction project in North America and lead the
second wave of US LNG projects. Golar's flexible, floating
liquefaction model has proven to be the world's lowest cost
liquefaction solution allowing Delfin to offer innovative
commercial solutions with reduced credit requirements, mid-term
offtake contracts (approximately 10 years) and FOB and DES LNG
pricing based on fixed price, S curves or tied to a variety of
energy indexes."
FORWARD LOOKING STATEMENTS
This press release contains certain
forward-looking statements concerning future events and Golar's
operations, performance and financial condition. Forward-looking
statements include, without limitation, any statement that may
predict, forecast, indicate or imply future results, performance or
achievements, and may contain the words "believe", "anticipate",
"expect", "estimate", "project", "will be", "will continue", "will
likely result", "plan", "intend" or words or phrases of similar
meanings. These statements involve known and unknown risks and are
based upon a number of assumptions and estimates that are
inherently subject to significant uncertainties and contingencies,
many of which are beyond Golar's control. Actual results may differ
materially from those expressed or implied by such forward-looking
statements. Important factors that could cause actual results
to differ materially include, but are not limited to, those factors
listed from time to time in the reports and other documents Golar
files with the United States Securities and Exchange
Commission.
New factors emerge from time to time, and it is
not possible for Golar to predict all of these factors. Further,
Golar cannot assess the impact of each such factor on its business
or the extent to which any factor, or combination of factors, may
cause actual results to be materially different from those
contained in any forward-looking statement. Golar does not intend
to release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in Golar's
expectations with respect thereto or any change in events,
conditions or circumstances on which any such statement is
based.
For further enquiries please contact:
Delfin Midstream
+ 1 713 703 6698
Golar LNG
+44 (0)20 7063 7900
Stuart Buchanan, Head of Investor Relations
Golar LNG (NASDAQ:GLNG)
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