Delfin Nears Final Investment Decision on First US Offshore LNG Export Terminal

HOUSTON, TX – January 12, 2026 – Delfin Midstream is on the verge of sanctioning the first floating liquefied natural gas (FLNG) export project in the United States, a move that would unlock a new frontier for American energy. The company announced today it has solidified key commercial agreements, moving its pioneering deepwater port project off the coast of Louisiana toward a Final Investment Decision (FID) expected next month.

In a significant step that signals growing confidence, Delfin has extended its Letter of Award (LOA) with South Korean shipbuilding giant Samsung Heavy Industries (SHI) for the construction of the project's first FLNG vessel. Concurrently, it has executed a crucial purchase order with Siemens Energy for the gas turbine packages that will power the liquefaction process. These actions effectively lock in major components of the supply chain, de-risking the project schedule ahead of the final financial commitment.

“With the last parts of the project coming together, we are very pleased to plan for the FID and immediate execution by ordering and reserving key equipment,” said Dudley Poston, Delfin CEO. “Our project represents a significant milestone in the development of critical energy infrastructure in the United States. We are excited by our progress and our continued collaboration with SHI, Black & Veatch, Siemens Energy and key vendors as we finalize the necessary commercial and financing workstreams to bring the country’s first offshore LNG project to market.”

Assembling the Technological Powerhouses

The series of agreements reveals a carefully constructed consortium of industry leaders tasked with bringing the complex offshore facility to life. Samsung Heavy Industries, a world leader in constructing complex vessels and offshore platforms, will serve as the lead contractor for the FLNG vessel itself. The shipyard and Delfin have been conducting Early Engagement work to finalize designs, with delivery of the first vessel anticipated in 2029.

Black & Veatch, a global engineering and construction firm, will act as the prime subcontractor to SHI, responsible for the engineering and procurement of the vessel's topsides—the intricate processing modules that will supercool natural gas into LNG. The project will deploy Black & Veatch’s patented PRICO® liquefaction technology, a process known for its efficiency and reliability in floating applications.

The heart of this system will be powered by Siemens Energy. Delfin has activated a purchase order for SGT-750 Gas Turbine Mechanical Drive Packages, moving from a manufacturing capacity reservation made in July 2025 to active production. These advanced turbines are essential for driving the compressors in the liquefaction train and are specifically chosen for their high power-to-weight ratio and operational flexibility, which are critical for an offshore environment.

Navigating a Competitive Global Market

Delfin's push towards FID comes at a pivotal time for the global LNG market. While analysts project a potential supply glut emerging as soon as 2027, driven by massive capacity additions from Qatar and other major producers, the long-term outlook for gas remains strong. Developers are in a race to secure market share and lock in customers before the new wave of supply comes online.

Securing long-term buyers is the key to unlocking the billions in financing required for such projects. Delfin has been successful on this front, building a portfolio of offtake agreements with major commodity traders and European utilities. The company has signed long-term deals with Vitol, which also made a strategic investment, as well as Gunvor, Centrica, and Hartree Partners. It also holds a heads of agreement with Germany's SEFE (Securing Energy for Europe) for 1.5 million tonnes per annum (mtpa) for at least 15 years, highlighting the strategic importance of U.S. LNG for European energy security.

To fund the ambitious project, Delfin is reportedly working with advisors Citigroup Inc. and Moelis & Co. to raise both debt and equity. While the complex financing arrangements have extended the fundraising timeline into 2026, the firm's progress in securing commercial and technical partners is a crucial step in demonstrating project viability to potential investors.

A New Model for US LNG Exports

The Delfin LNG project is not just another export terminal; it represents a paradigm shift. If it reaches operation, it will be the first deepwater port for LNG export in the United States. Instead of building massive, land-intensive facilities, Delfin’s model leverages existing offshore infrastructure. The company acquired the UTOS pipeline, the largest natural gas pipeline in the Gulf of Mexico, in 2014, which will be used to feed gas to the floating facility located about 40 nautical miles off the coast of Louisiana.

This “brownfield” approach minimizes new environmental footprints and significantly reduces capital costs. The project's full scope envisions deploying up to three FLNG vessels, which could collectively produce up to 13.2 million tonnes of LNG annually.

The project has already cleared significant regulatory hurdles. In March 2025, the U.S. Maritime Administration (MARAD) issued Delfin its deepwater port license, a first-of-its-kind approval under the Deepwater Port Act. The Department of Energy has also extended its non-Free Trade Agreement export authorization deadline to June 2029, with Delfin seeking a further extension to 2031 to align with construction timelines. Despite these approvals, the project has faced legal challenges from environmental groups, a common feature for major energy infrastructure projects.

As Delfin moves into its final countdown for a Final Investment Decision, the convergence of secured technology, binding commercial agreements, and advanced regulatory approvals places it at the forefront of the next evolution in U.S. energy exports. The decision next month will not only determine the fate of a multi-billion-dollar project but could also mark the beginning of a new chapter for America’s role in the global energy trade.