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Delfin LNG floating export project will continue without Golar

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Delfin LNG floating export project will continue without Golar

Delfin LNG LLC executives said partner Golar LNG Ltd.'s departure will not affect their proposed deepwater liquefied natural gas export project off Louisiana.

"We cannot speak to the issues at Golar or the disclosures it has made as part of its earnings announcement, but the Delfin project is well established and has attracted significant global partners," Delfin LNG CEO Dudley Poston said in a Sept. 4 statement.

"Delfin LNG continues to see strong interest from LNG buyers for its low-cost, flexible, floating solution," Poston said.

The Delfin LNG executive issued the statement after a Golar executive said in an Aug. 29 earnings call that his company would drop from a partnership to develop the LNG export facility. Golar Management Ltd. CEO Iain Ross said his company no longer considered the Delfin LNG project an ideal investment, partly because of doubts about the project reaching a final investment decision.

In a Sept. 5 email, Delfin LNG COO Wouter Pastoor said Golar has never been a Delfin investor, only a potential joint developer of one part of the facility. Golar's announcement involved only one out of four of the project's four floating gas liquefaction vessels, each designed to have an LNG production capacity of 3.3 million tonnes per annum. The project is being developed by Fairwood Peninsula Energy Corp.'s Delfin Midstream LLC.

Poston said the project would proceed with two options. In a new-build option, the vessels would be built in Korea with Samsung Heavy Industries and Black & Veatch Corp. A conversion option would use an already completed design that would be built in China or Singapore. With this approach, Delfin LNG expects to bring in the project at a lower cost, he said.

"With the parallel development of the new-build and conversion floating LNG solutions, the Delfin project is one of the most advanced second wave LNG projects in the U.S.," Poston said.

The developer has "successfully conducted all permitting work" and received a favorable decision from the lead regulator for the project, the U.S. Transportation Department's Maritime Administration, Poston said.

In September 2017, the Federal Energy Regulatory Commission approved the onshore facilities of the Delfin project. The facilities include metering, compression and piping infrastructure in Cameron Parish, La. These facilities would connect to the four floating LNG vessels, which would lie about 40 nautical miles off Louisiana's coast. (FERC docker CP15-490)