MOL Joins Delfin FLNG Development in US with Planned Investment of $300M

(Credit: MOL)

Mitsui O.S.K. Lines (MOL) has reached a final investment decision to participate in the Delfin FLNG 1 project, an offshore floating liquefied natural gas (FLNG) development off the coast of Louisiana that is expected to become the first FLNG facility in the United States.

The project is being developed by Delfin Midstream alongside a group of investors led by Global Infrastructure Partners (GIP), part of BlackRock, and energy trader Vitol.

Delfin FLNG 1 is planned to have an annual LNG production capacity of 4.4 million tonnes and is targeting first production in 2030. The project is estimated to cost around $5 billion, with total equity contributions of approximately $1.4 billion. MOL plans to invest around $300 million, representing roughly 23% of the equity contribution.

The Japanese shipping company said it first invested in Delfin Midstream in 2023 and has since supported development of the FLNG project while conducting a commercial evaluation of the development.

According to MOL, Delfin FLNG 1 has secured the permits and licenses required to begin construction and has signed long-term LNG sales agreements with Vitol, Gunvor, Centrica and U.S. natural gas producer Expand Energy.

Following the FID, a construction contract for the FLNG facility will be executed with Samsung Heavy Industries, moving the project into its execution phase.

In addition to its equity participation, MOL said it will contribute offshore facility expertise developed through its floating storage and regasification unit (FSRU) business, as well as operational, safety and financial experience.

The project will source natural gas from the U.S. mainland and transport it through existing pipelines to an FLNG facility located about 40 miles offshore southern Louisiana. The gas will be liquefied onboard the vessel before being loaded onto LNG carriers for export.

MOL said the investment expands its presence across the LNG value chain, complementing its existing LNG shipping, receiving and regasification activities with participation in the upstream production segment.