Vitol invests in Delfin FLNG 1, the first offshore LNG facility in the United States

Vitol has invested in Delfin FLNG 1, the first floating liquefied natural gas (LNG) liquefaction facility in the United States and the largest floating LNG project globally. Vitol is both an equity investor in the project and will be its largest offtaker, once the project is completed, with volumes of 1.4MTPA. This builds on Vitol’s 2022 investment in and offtake agreement with Delfin LNG.

Delfin Midstream Inc. (Delfin) has taken a Final Investment Decision (FID) on Delfin FLNG 1.

Vitol is investing equity to help fund the construction of Delfin FLNG 1 alongside a group of investors led by Global Infrastructure Partners (GIP), a part of BlackRock, and Mitsui O.S.K. Lines, Ltd. (MOL).

FLNG will be located approximately 40 miles off the southern coast of Louisiana. It will have an annual nameplate LNG production capacity of 4.4 million tonnes and is expected to begin production in 2030. The total project cost is approximately US$5 billion. Feed gas will be sourced on the U.S. mainland and transported via existing pipelines to the offshore facility, where it will be liquefied onboard the FLNG vessel before being loaded onto LNG carriers for delivery to global markets.

 Ben Marshall, President & CEO of Vitol Americas, said: “This is an important investment for Vitol in the United States. Delfin FLNG 1 will deliver reliable, cost-competitive American energy to global markets. We are proud to be a part of this first for American energy alongside Delfin, MOL and Global Infrastructure Partners.”

 Pablo Galante Escobar, Global Head of LNG at Vitol, said: “Vitol has been involved in the Delfin LNG project since 2022, as a strategic investor and offtaker. Investing in Delfin FLNG 1 and being the project’s largest offtaker underscores our commitment to LNG, to the growth of U.S. energy exports and to the diversification of global energy supply chains. We are excited to be part of this significant milestone in partnership with Delfin, MOL and Global Infrastructure Partners.”

 Dudley Poston, CEO of Delfin, added: “Securing FID for our first FLNG vessel is a groundbreaking milestone not only for Delfin, but also for global energy security. We are excited by our ability to support U.S. energy and maritime dominance by bringing safe, reliable, low-cost LNG exports to market. This monumental achievement is a testament to the strength of our partnerships, meaningful collaboration across all project stakeholders and the hard work of our dedicated team. We look forward to working closely with GIP, MOL and Vitol on delivering this first phase of the Delfin LNG project.”

 Mark Florian, Head of GIP Mid-Market Funds, said: “We are excited to partner with Delfin, MOL and Vitol to support the construction of the first phase of Delfin FLNG, a landmark U.S. LNG infrastructure project designed to help meet growing global demand for reliable, secure energy. Backed by an experienced management team, proven construction partners and long-term agreements with leading energy companies, Delfin FLNG 1 is well positioned to deliver cost-competitive U.S. LNG to global markets.”

 Jotaro Tamura, President and CEO of MOL, said: “MOL began its investment in Delfin in 2023 and since then has seen the Company’s FLNG project rapidly progress. We are delighted to further our strategic partnership with Delfin while continuing to leverage our significant expertise in offshore floating facilities to support the Company’s essential work and expand our business in the U.S. and across the gas value chain globally.”