Vitol Secures Equity Stake and 1.4 MTPA Offtake in $5bn Delfin Offshore LNG Project

Delfin Midstream Inc. has taken a Final Investment Decision on Delfin FLNG 1, marking the commencement of construction for the first floating LNG facility in the United States. According to an announcement published by the Vitol newsroom, energy trading group Vitol has joined the development as an equity investor and will serve as its largest off-taker. Under the terms detailed in the release, Vitol will receive 1.4 million tonnes per annum of LNG once operational, building on a strategic investment and off-take agreement initially entered into with Delfin LNG in 2022.

The offshore project carries a total estimated capital expenditure of approximately $5 billion, as stated in the company release. Vitol is contributing equity alongside an investor consortium led by Global Infrastructure Partners, a unit of BlackRock, and Japanese shipping operator Mitsui O.S.K. Lines, Ltd., which previously entered the project with an investment in 2023. Upon completion, the project will represent the largest floating liquefaction asset globally.

Located approximately 40 miles off the southern coast of Louisiana, Delfin FLNG 1 is designed with an annual nameplate production capacity of 4.4 million tonnes, according to Vitol's statement, with first commercial output anticipated in 2030. Feed gas will be sourced from the U.S. mainland and moved via existing pipeline connections to the offshore facility. Natural gas will be liquefied directly on board the vessel before being loaded onto LNG carriers for export to global destinations.

Commenting in the release, Ben Marshall, President and CEO of Vitol Americas, emphasized that the investment will deliver cost-competitive American energy to global markets. Pablo Galante Escobar, Global Head of LNG at Vitol, noted that the commitment underscores the firm's focus on U.S. export growth and supply chain diversification. Delfin CEO Dudley Poston highlighted the milestone for maritime exports and global energy security, alongside supporting comments from Mark Florian, Head of GIP Mid-Market Funds, and Jotaro Tamura, President and CEO of Mitsui O.S.K. Lines.