Delfin Taps MidOcean, Siemens Energy as FLNG2 Nears FID
Delfin Midstream’s second floating LNG project offshore Louisiana cleared two key milestones this week, World Oil reports. MidOcean Energy, an LNG company formed and managed by EIG, can acquire up to a 50% equity stake in the FLNG2 project pending a positive final investment decision (FID) and standard closing conditions, with MidOcean also set to receive a proportional share of LNG output. Separately, Delfin issued a Limited Notice to Proceed to Siemens Energy to begin procuring critical long-lead equipment, including four SGT-750 gas turbines and mixed-refrigerant compressors. FLNG2 mirrors the design of Delfin’s FLNG1 vessel, which reached FID in June, an approach the companies say will cut execution risk and cost. The FLNG2 vessel targets 4.4 MMtpa of capacity and will moor offshore Louisiana, tying into existing infrastructure at the Delfin Deepwater Port. Delfin and MidOcean are also collaborating on early-stage work for a potential third vessel, FLNG3, signaling further Gulf Coast LNG export expansion.
What It Means for Subcontractors
- The Siemens Energy Limited Notice to Proceed signals turbine and compressor manufacturing slots are being locked in now; E&I, mechanical, and rotating equipment specialists should position for hookup and commissioning packages tied to FLNG2’s four SGT-750 units ahead of FID later this year.
- MidOcean’s potential 50% equity stake gives the project added financial backing, which typically precedes subcontract package releases; fabrication, marine hookup, and mooring crews working the Delfin Deepwater Port offshore Louisiana should watch for bid packages once FID is confirmed.
- The repeat-design strategy from FLNG1 to FLNG2 means subcontractors already qualified on Delfin’s first vessel are well positioned for rebid opportunities on FLNG2, and potentially FLNG3, given the companies’ stated interest in expanding Gulf Coast LNG export capacity.
