Delfin LNG may not be able to accept natural gas supplies on a pipeline expansion that’s expected to enter service in July 2026 as the offshore export project continues working through delays, a Kinder Morgan Inc. subsidiary told federal regulators.
Delfin warned Natural Gas Pipeline Co. of America LLC (NGPL) that it might not be able to adhere to the schedule outlined in its long-term transportation agreement for 80 MMcf/d on the Texas-Louisiana Expansion Project, NGPL said in a filing with the Federal Energy Regulatory Commission.
Delfin has asked the U.S. Department of Energy (DOE) for an extension to place its first phase online in June 2029. The company cited energy market impacts from the Covid-19 pandemic and global conflicts that made it impossible to reach previous deadlines under its permits.
NGPL has signed other firm transportation agreements with Devon Gas Services LP, EDF Trading North America LLC and Golden Pass LNG for most of the capacity on the expansion project. The Texas-Louisiana expansion would add about 300 MMcf/d to NGPL, and combined with other unsubscribed capacity, would make about 467 MMcf/d available on the system.
NGPL stressed that the expansion has to be completed on schedule in order to meet the needs of its other project shippers. Those precedent agreements cover 83% of the expansion’s capacity.
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NGPL said it would continue to work with Delfin to execute its original agreement. NGPL said, however, that “the existing precedent agreements demonstrate robust market demand for the project” and it “remains confident that any remaining project capacity will be subscribed.”
For more than a decade, Delfin has proposed building an offshore deepwater port connected to onshore pipeline infrastructure it owns. As designed, Delfin expects to produce more than 13 million metric tons/year (mmty) at full scale from four floating liquefied natural gas (FLNG) units.
If constructed, Delfin would be the first offshore LNG export facility in the United States, which places it under the regulatory oversight of U.S. Maritime Administration (MARAD). The project received approval from MARAD in 2017. Since then, the firm has been awaiting the final issuance of a license from MARAD.
In April, MARAD told Delfin it had noted “widespread changes” in the design, financing and operation of the facility that made it unable to issue a license without more information. The updated application also would require an additional environmental review and subsequent public hearings, according to MARAD.
In March, Delfin told DOE it had secured potential offtake agreements to provide buyers with 5.6 mmty of the super-chilled fuel under tentative or binding supply contracts, allowing it to potentially sanction at least one FLNG in the coming months once it received a license from MARAD.
