Home / Business and Economy / US Approves First Floating LNG Terminal
US Approves First Floating LNG Terminal
13 Jun
Summary
- US regulators approved America's first offshore floating LNG export terminal.
- Delfin Midstream's project faces delays but uses innovative offshore design.
- First LNG exports are targeted between 2029 and 2030.
- Floating terminals offer faster deployment and lower environmental impact.
U.S. regulators have granted approval for the nation's first floating liquefied natural gas (FLNG) export terminal, set to be located approximately 40 nautical miles off the coast of Louisiana. This landmark decision allows Delfin Midstream to proceed with its $5 billion project.
The innovative offshore design bypasses the need for extensive onshore construction. It will connect specialized floating liquefaction vessels to existing subsea pipelines, utilizing the UTOS pipeline to transport gas from the mainland grid.
Construction of the main FLNG vessel has been contracted to Samsung Heavy Industries for $2.9 billion. Following a Final Investment Decision on June 3, 2026, the project aims to commence LNG production and exports between 2029 and 2030.
The initial vessel is designed to export 4.4 million tonnes of LNG annually, with nearly 90% of its capacity already secured through long-term agreements with major energy companies.
Floating LNG terminals offer significant advantages, including faster deployment times of 1-3 years compared to 4-6 years for onshore plants. They also present a smaller environmental footprint and lower costs.
Despite these benefits, the project has encountered delays and faced opposition from environmental groups and local advocates concerned about climate impacts, safety, and effects on fishing communities.
Other companies, including Golar LNG and New Fortress Energy, are also active in the FLNG sector.
