Delfin LNG and SEFE Sign 15-Year Agreement for U.S. LNG Supply
Delfin LNG, in partnership with German company SEFE, has announced a significant agreement for the supply of 1.5 million tons of U.S. LNG per annum over a 15-year period. This partnership signifies a strategic move towards securing energy resources for Europe.
The agreement entails the export of liquefied natural gas from floating LNG (FLNG) vessels that Delfin plans to deploy off Cameron Parish, Louisiana. The deliveries, on a free-on-board basis, will commence upon the completion and commissioning of the FLNG vessels, although a specific timeline has not been provided as the project awaits a final investment decision.
Frederic Barnaud, SEFE’s Chief Commercial Officer, expressed the company’s enthusiasm about the agreement, stating, “This long-term agreement with Delfin enables SEFE to further diversify its LNG portfolio with greater destination flexibility.” SEFE already has existing LNG supply agreements with other U.S. producers, including Venture Global LNG.
Recently, Delfin received a license from the U.S. Maritime Administration to construct a deepwater port for LNG exports from the United States. Additionally, the company holds a Department of Energy license allowing the export of up to 13.2 million tons per annum of LNG to nations without a free trade agreement with the U.S.
Amidst geopolitical tensions, the U.S. has emerged as a key player in the global LNG market, particularly in supplying Europe and Germany with natural gas to reduce dependence on Russian gas following recent events in Ukraine.
With this latest agreement between Delfin LNG and SEFE, both companies are poised to make a significant impact on the energy landscape, ensuring a stable and diversified supply of LNG for European markets.
Sources: Reuters