Delfin LNG LLC, which is developing the first floating deepwater liquefaction project in the United States, has signed a new memorandum of understanding (MoU) regarding gas supplies.
Under the terms of the agreement, natural gas supply and trading company LITGAS, part of the Lithuanian state-controlled Lietuvos Energija energy group, intends to contract processing capacity at the liquefied natural gas (LNG) deepwater port, which will be constructed in the Gulf of Mexico off the coast of Louisiana.
The project is expected to be fully operational by 2019.
Dominykas Tuckus, general manager of LITGAS, said that the company was actively investigating potential supplies from the United States and this MoU "marks a significant step towards further potential cooperation, which in the long run can contribute to the objective of diversification of gas supplies in Lithuania."
"At this time, the need for diversification of supply in Europe is critical," explained Frederick Jones, president of Delfin LNG. "As such, Delfin LNG is looking to fill the void by supplying European entities with the diversification they need in an environmentally friendly, cost-competitive and efficient manner."
Delfin LNG also recently signed a joint development agreement with Hˆegh LNG Ltd in relation to its LNG Deepwater Port Project.
A year ago Delfin LNG received approval from the U.S. Department of Energy's Office of Fossil Energy for exports to countries that have a Free Trade Agreement (FTA) with the United States. This long-term, multi-contract authorization allows the company to export LNG produced from domestic sources in a volume equivalent to approximately 657.5 billion cubic feet per year (Bcf/yr) of natural gas, or 1.8 billion cubic feet per day (Bcf/d).
Delfin LNG has also applied for authorization to export to non-FTA countries.