HOUSTON (Reuters) – Delfin LNG and German company Securing Energy For Europe (SEFE) have signed a 15-year agreement for 1.5 million tons of U.S. LNG per annum, the companies said on Tuesday.
Under the agreement, liquefied natural gas would be exported from floating LNG (FLNG) vessels that Delfin wants to deploy off Cameron Parish, Louisiana, Delfin said in a press release.
The free-on-board deliveries will commence immediately following the construction and commissioning of the FLNGs, Delfin said.
It did not provide a timeline. The project does not yet have a final investment decision.
“This long-term agreement with Delfin enables SEFE to further diversify its LNG portfolio with greater destination flexibility,” said SEFE’s chief commerical officer, Frederic Barnaud.
SEFE also has LNG supply agreements with other U.S. producers including Venture Global LNG.
Last Friday, the U.S. Maritime Administration issued a license authorizing Delfin to build a deepwater port to export LNG from the United States.
The company also has a license from the Department of Energy to export up to 13.2 MTPA of the superchilled gas to countries that do not have a free trade agreement with the United States.
The U.S. is the world’s largest exporter of LNG and has played a crucial role in providing Europe and Germany with the gas it needs to replace Russian gas following Russia’s invasion of Ukraine.
(Reporting by Curtis Williams in Houston; Editing by Leslie Adler)
