Delfin LNG Gets Deadline Extension for Export Start

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Delfin LNG Gets Deadline Extension for Export Start

The United States Department of Energy (DOE) on Monday granted a five-year deadline extension for Delfin LNG LLC to begin exports under its non-FTA permit. Delfin LNG is a brownfield deepwater port project in Louisiana planned to support up to four floating liquefied natural gas (LNG) vessels. It is owned by Delfin Midstream Inc. The […]

The United States Department of Energy (DOE) on Monday granted a five-year deadline extension for Delfin LNG LLC to begin exports under its non-FTA permit.

Delfin LNG is a brownfield deepwater port project in Louisiana planned to support up to four floating liquefied natural gas (LNG) vessels. It is owned by Delfin Midstream Inc.

The under-construction project now has until June 1, 2029, to dispatch its first non-FTA cargo of LNG.

Delfin LNG is authorized to ship the equivalent of up to 657.5 billion cubic feet a year of natural gas to countries with a free-trade agreement (FTA) with the U.S. It is also permitted to deliver as much volume to countries with no FTA with the U.S.

The volumes are non-additive. In 2021 the DOE discontinued its practice of issuing separate long-term permits for the export of LNG from the same facility.

Delfin LNG’s FTA and non-FTA permits expire December 31, 2050, extended from their initial 20-year terms. In 2020 the DOE adopted a policy that allows existing and future LNG export permits to seek a term through to 2050, instead of the standard 20-year term.

Last year, Delfin LNG requested the DOE under the Biden administration to remove the export commencement deadline in the FTA permit and move the non-FTA deadline of June 1, 2024, by five years.

In Monday’s order the DOE explained, “The FTA requirement applies to the date by which Delfin’s FTA export term starts (i.e., not actual export operations)”.

“The non-FTA requirement, on the other hand, applies to the deadline by which Delfin must commence export operations, after which point the non-FTA authorization will expire by its own terms”, the DOE added.

“Because the term of Delfin’s FTA authorization now extends to the fixed date of December 31, 2050, it is no longer necessary to impose a specific date by which the term of the FTA authorization must start”, the DOE ruled. “Therefore, DOE is modifying the FTA term to begin on the date of first export, consistent with DOE precedent”.

And though the DOE adopted a policy in 2023 that it would not entertain requests for deadline extensions for existing and future non-FTA permits, it agreed with Delfin LNG that the project met exceptions. Exceptions may be granted if the developer had physically begun construction before asking for additional time and if delays are due to circumstances outside of the developer’s control.

Delfin LNG is eyeing to reach a final investment decision this year, according to a separate statement by the DOE.

Energy Secretary Chris Wright approved Delfin LNG’s export term amendments at CERAWeek, telling the energy conference in Houston, “The positive energy and renewed enthusiasm for U.S. leadership in energy exports from our allies and trading partners here at CERAWeek is palpable, and I am thrilled to sign this order to help another U.S. LNG project advance”.

Last week the DOE extended the deadline for the commencement of non-FTA export operations at ExxonMobil Corp. and QatarEnergy’s Golden Pass LNG by two years to March 31, 2027.

In other LNG-related orders under Donald Trump’s second non-consecutive term, Commonwealth LNG earlier received an initial non-FTA export permit and the DOE eased restrictions on the ship-to-ship transfer of LNG as a marine fuel.

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