MOL Joins $5 Billion US Floating Louisiana LNG Project

Silhouette of a floating LNG project on the horizon at sunset
Corporate News Environment Offshore The Americas
by Maritime Bell Staff

Mitsui O.S.K. Lines (MOL), Delfin Midstream, Vitol and a consortium of investors have approved a final investment decision for a major offshore floating liquefied natural gas (FLNG) project in the United States.

The Delfin FLNG 1 facility will become the first FLNG project in the U.S. and is expected to be the largest of its kind in the world. The project is designed to produce 4.4 million tonnes of LNG annually and is scheduled to begin operations in 2030. Samsung Heavy Industries has been selected to build the FLNG unit.

The overall project carries an estimated cost of approximately $5 billion, with investors contributing around $1.4 billion in equity. MOL will provide roughly 23 percent of the total equity investment, equivalent to about $300 million. The company will also become the first Japanese shipping firm to invest in an FLNG development.

Delfin FLNG 1 has already secured all necessary permits and regulatory approvals required to begin construction. The project has also finalized long-term LNG supply agreements with Vitol, Gunvor, Centrica and Expand Energy.

Liquefied natural gas offers a highly efficient method of transporting natural gas by reducing its volume to about one six-hundredth of its original gaseous state. Traditionally, LNG is produced at land-based liquefaction plants before being transported by specialized LNG carriers.

FLNG facilities perform the liquefaction process offshore, offering several advantages over conventional onshore projects. These include reduced impacts on nearby communities and greater operational flexibility by avoiding heavily trafficked shipping routes.

Another key benefit is resilience during extreme weather events. In situations such as hurricanes, FLNG vessels can disconnect from their mooring systems and relocate to safer areas, helping to minimize the risk of damage.

For the Delfin FLNG 1 project, natural gas will be sourced from the U.S. mainland and delivered through existing pipeline infrastructure to the offshore facility, which will be positioned around 65 kilometers off the coast of southern Louisiana. Once onboard, the gas will be converted into LNG and transferred directly to LNG carriers for export to customers.