corporate presentation · 2020. 10. 11. · 550 $/tpa 3.5 mtpa 12+ mtpa 1. utilizing existing...
TRANSCRIPT
October 2020Delfin Midstream- North American LNG export using FLNG
Corporate Presentation
Capitalizing on Two Major Industry Revolutions
Shale RevolutionFloating LNG Revolution
>35 FSRUs have opened up
new markets and many new
import countries, importing 10-
15% of global LNG supply
7 FLNGs in operation or under
construction (supplying ~5%
of global LNG)
The Combination:
2
The LNG market is stuck with traditional models that do not address the world’s demand for
low cost, flexible LNG to become a preferred fuel-of-choice over coal and liquids
▪ The Traditional Model is pursuing “Economies-of-Scale” with major projects of 10+ MTPA requiring many long-term offtake contracts to
underpin the financing
▪ The world markets need low-cost, flexible LNG supply and has limited capacity to underpin major conventional projects
▪ The Solution: Standardized Floating LNG allows the costs to be 20-40% cheaper with FID thresholds of just 2.0 - 2.5 MTPA
▪ Delfin LNG will consist of:
o Terminal with moorings for 4 FLNG Vessels located 39 nuatical miles offshore
of Cameron Parish, Louisiana
o Existing 42” UTOS (owned) and HIOS (long-term leased) subsea pipeline
systems re-purposed to transport gas from shore to the terminal
o Subsea pipeline end manifold, spur flowline to single-point, disconnectable
mooring system for FLNG Vessels
o Existing pipeline interconnects with several major onshore natural gas
pipelines, including onshore natural gas compression facility (owned)
▪ Delfin owns the intellectual property: environmental permits, export licenses,
completed FEED studies, right to operate FLNG vessels, marketing organization
▪ Delfin’s FLNG Vessels are based on the “offshore proven” Black & Veatch
PRICO® liquefaction technology
▪ Delfin’s FLNG Vessels offer significant advantages over onshore liquefaction
facilities:
o Lower capital costs per ton for smaller FID threshold
o Shorter construction periods, reducing financing costs
o Lower environmental / community impact
o Mobility allowing for maximized economic value
▪ Each FLNG Vessel to be financed (debt and equity) at the project level with its
own commercial/financial structure
Gulf of Mexico Project Overview
3
Anchor project: Delfin LNG
UTOS
Pipeline(42”, 26 nm)
HIOS
Pipeline(42”, 18 nm)
WC 167
FLNGV1
FLNGV3
FLNGV2
FLNGV4
Grand ChenierPipeline
(30”, 37nm))
FLNGV5
FLNGV6
Station 44 Grand Chenier
Station
WC 171
US Gulf Coast Projects
Expansion project: Avocet LNG
Delfin Midstream owns a second pipeline system (Grand Chenier pipeline) which may
be developed for either:
▪ A second Deepwater Port (Avocet LNG) for an additional 2 FLNGV
▪ Increased feedgas supply to the Delfin DWP to enhance gas supply flexibility and
security or expand with additional FLNG Vessels at the Delfin Deepwater Port
Delfin LNG Avocet LNG
450
500
550
600
650
700
750
800
850
900
950
0 3 6 9 12 15 18 21 24 27 30
Tota
l Co
sts
($/t
pa)
(n
amep
late
bas
is)
LNG Nameplate Capacity (MTPA)
DelfinNewbuild
DelfinConversion
Key Differentiators – Lower Costs & Faster FIDs
4
FLNG FID with 2.0 - 2.5 MTPA of Offtake compared to 10+ MTPA for land-based projects
Lower Unit Costs Lower Project Viability Thresholds Faster FIDs
Note: Delfin’s total costs are around $500-550/tpa and include all costs up to start of commercial operations (incl. FLNG Vessel, disconnectable mooring system, pipeline connections, owner’s
costs, transit, installation, commissioning, contingencies), excl. finance costs, on a nameplate capacity basis
450
500
550
600
650
700
750
800
850
900
950
0 3 6 9 12 15 18 21 24 27 30
Tota
l Co
sts
($/t
pa)
(n
amep
late
bas
is)
LNG Nameplate Capacity (MTPA)
DelfinNewbuild
DelfinConversion
Benefits of Being Lower Cost & Smaller Scale
5
▪ Delfin can offer a discount on a toll of 0.20 to 0.40
$/mmbtu (depending on term, credit and other details)
▪ Delfin can offer discounted rates for shorter terms of 15,
12 or even 10 years
▪ Delfin can offer enhanced flexible pricing. For example, a
flexible tolling structure with a floor of 1.70 $/mmbtu and a
ceiling of 2.40 $/mmbtu, fluctuating based on a an agreed
index (Brent, HH, JKM, etc.)
▪ Intrinsic value of a floating asset enhances the viability for
shorter term contracts
▪ Successful marketing of the Delfin vessels will enable
Delfin to provide solid returns to its shareholders while
maintaining lowest competitive rates for its customers
Benefits of Cost Differences
▪ Each FLNG will have full commercial flexibility (toll / SPA / integrated, etc.)
▪ With firm, creditworthy offtake of 2.0 to 2.5 MTPA, which secures debt
financing, Delfin can take FID. Large projects need to secure many offtake
deals before FID is in sight providing uncertainty to the foundation Buyers.
▪ Delfin can offer equity participation to a buyer in the FLNGV (at Project Level)
▪ Delfin can offer slot flexibility to customers that wish to maintain optionality on
their FID timing, i.e. a firm offtake agreement with optionality on FLNG slots
▪ FID of a dedicated slot in a downstream value chain can be linked to the
downstream FID (e.g. a large power plant can decide the FLNG FID)
▪ Allocating 250 mmscfd from upstream reserves to an integrated project is a
feasible option for many upstream producers and would already take 50% of
an FLNGV capacity, enabling more easily an upstream integrated project
Benefits of FID Threshold Differences
800 $/tpa
550 $/tpa
3.5 MTPA 12+ MTPA
1. Utilizing existing pipelines (i.e. Delfin LNG is partially “brownfield”)
2. No need for new onshore pipelines
3. Low cost Asian labor
4. Standardization of generic liquefier FLNG technology
5. Manufacturing-like construction process in shipyard
6. Construction at existing yard which eliminates investments on sites
and utilities to enable plant fabrication
7. LNG offloading is done in a side-by-side configuration, which
eliminates the need for long cryogenic pipelines and marine
infrastructure (i.e. the LNGC berth is an integral part of the FLNG)
How to Achieve Material Cost Savings?
Commercial Structuring – Maximum Flexibility
Financing of US Export Projects
▪ Financing is a key commercial constraint for each project
▪ US projects have been financed on the back of HH+ offtake
commitments with credit worthy offtakers.
Delfin is Uniquely Different
▪ FID in smaller increments at lower unit costs
▪ Built in an Asian shipyard to support vendor and Export Credit
Agency financing
▪ Flexible asset, which can be re-deployed (facilitate shorter
contracts, asset intrinsic value)
▪ Each FLNG Vessel can make FID independently, with it’s own
financing and commercial model
A) Traditional Toll or HH Indexed FOB (10-20 years)
Toll can be flexible and be partially indexed to LNG prices, Brent, or
other indices or a mix
B) Integrated Upstream-Liquefaction Joint Venture
Reserves+FLNG vessel are in a JV that produces gas, transports gas
to the FLNG vessel and sells FOB LNG (on an index basis)
C) Strategic Partnerships (e.g. Traders/Producers)
Delfin and Partner Joint Venture with (certain) balance sheet support
from Partner supporting debt financing
D) Integrated LNG-to-Power project
Delfin contributes a dedicated FLNG slot to an integrated value chain
development, creating full value chain alignment
E) LNG FOB to bunker / small-scale buyersBunkering and small-scale volumes sold on small parcel basis
Illustration of Delfin’s commercial optionality
UTOS Avocet
HIOS
FLNGV-1 FLNGV-2
FLNGV-3 FLNGV-4
FSRU
LNGC
Gas-to-Power
Gas distribution
LNG break-bulk
Upstream hydrocarbon reserves
Upstream IntegrationJV of upstream reserves with
a dedicated FLNGV slot
selling LNG on SPA basis
Downstream IntegrationJV of liquefaction and
downstream market
Toll / LNG SPA FOB(e.g. fixed, flexible, HH, Brent,
TTF, JKM, mixed, . . .)
LNG DES SPA(e.g. fixed, flexible,
HH, Brent, TTF, JKM,
mixed, . . .)
LNGC
LNG bunkering FOB
LNGC Bunker
6
Differentiation for Chinese / Korean Players
LNG Offtake Financing FLNG ConstructionUpstream gas supply &
Gas Transportation
Delfin has Mature FLNG Vessel Solutions for Construction in Korea and China
Delfin offers lowest cost US LNG, significant commercial flexibility and
significant in-country contents to local LNG Buyers, marketing to
established LNG buyers, regional gas companies and power
companies
Delfin and Shipyards work jointly towards ECAs and debt financiers to
secure favorable export credit support and export debt financing
Complete construction of the FLNG, topside module fabrication,
integration, completion and pre-commissioning/commissioning in
country
Additional opportunities are possible for E&P companies or
gas/commodity trading to produce/ North American shale gas as feed gas supply for liquefaction onboard Delfin FLNG Vessel and structure the project as an integrated project
L N G F L N G
Shipyard Group Leasing Arms
Chinese / Koreans lenders
Export Credit Agencies
Export-Import banks
95% of the project CAPEX can be constructed in Asia
The big three Chinese Buyers
2nd tier Chinese Gas Companies
KOGAS
Korean GenCo’s / IPPs
Import Developers
Chinese Yard(s) & module fabricators
Samsung Heavy Industries (Korea, subsidiaries and
subcontractors)
E&P Companies
Integrated O&G
7
8
Permitting Success
Major Milestones Accomplished
▪ DOE approval to export gas to Free Trade Agreement (“FTA”) countries
▪ Pre-filing work for Maritime Administration (“MARAD”) and Federal Energy Regulatory Commission (“FERC”) permits
▪ Formal submission of MARAD and FERC permits
▪ Receipt of MARAD determination that application was “complete”
▪ Successful modification of application for change in technical design
▪ Receipt of Draft Environmental Impact Statement (“DEIS”)
▪ Receipt of Final Environmental Impact Statement (“FEIS”)
▪ Receipt of Record of Decision (“ROD”)
▪ DOE approval to export gas to Non-Free Trade Agreement (“FTA”) countries
▪ FERC Order Received for Land-based infrastructure
Notable Reports / Ancillary Permits
▪ Application to Louisiana Department of Natural Resources
▪ Application to US Army Corps of Engineers
▪ Coastal Zone Management Consistency Certification for Louisiana
▪ Coastal Zone Management Consistency Certification for Texas
▪ US Environmental Protection Agency (“EPA”) Region 6 Permit
▪ Louisiana Department of Environmental Air Permit for onshore facilities
▪ Port Operations Manual
▪ Various modeling reports – air, noise, dispersion, spill consequence
▪ 12 resource reports for FERC Certificate of Public Convenience and Necessity
Successfully Permitted the First FLNG Project in North America
8
Permitting of Avocet and expansion projects in Gulf of Mexico will
be short and cost-efficient by leveraging the Delfin permitting work
Abundant Gas Supply & Transportation
Delfin is able to make FID in 0.5 BCF/day increments allowing for FID(s) without building new pipeline
9
Source: Company Information, EIA
▪ Multiple options have been structured to secure
pipeline capacity for at least the first two FLNG
Vessels
▪ Pipeline capacities can be increased by adding
compression and/or reversals
▪ Detailed discussions with several pipeline
companies to access volumes from multiple
basins – Haynesville, Marcellus, Barnett and
Permian
▪ Given the smaller capacity needed per FLNG
Vessel FID there is ample opportunity to utilize
existing underutilized pipelines
▪ Off-takers may prefer accessing their own gas so
final discussions will take place once commercial
discussions have progressed
Lake Charles
Port Arthur
Delfin
Deepwater Port
UTOS Avocet
HIOS
Delfin LNG – Unique Environmental Characteristics
10
Partly Brownfield▪ Re-purposing of existing offshore pipelines
▪ Re-purposing of existing onshore pipeline facilities & infrastructure
▪ FLNG Vessel may be a conversion of an existing LNG carrier (re-purposing of vintage LNGC)
Leverage Existing
Infrastructure
▪ Construction of the entire FLNG facility at an existing shipyard - no preparation and investments in project
specific sites and fabrication facilities at a bespoke location
▪ No need for new onshore pipelines for the first FLNG Vessels as existing offshore pipelines tie into multiple
onshore pipeline systems with ample capacity
Minimal Environmental
Impact
▪ No seawater use for cooling - Air cooling of liquefaction, process and utility services onboard
▪ Maximum efficiency of process and power generation systems to limit emissions (Optimized PRICO®, Inlet Air
Chilling, waste-heat recovery, direct air cooling of mixed refrigerant)
▪ No venting and flaring in normal operations
▪ Minimal intrusion in landscape and seabed, efficient decommissioning and abandonment at end-of-life
Compact Design
▪ Integrated berth for LNG carriers – no need for long cryogenic pipelines and dedicated marine berth
infrastructure
▪ Minimal use of goods and materials
▪ Minimal piping, flanging etc. to minimize methane leaks
Offshore
▪ No impact on congested ports, inland waterways and ship channels and no risk to the public
▪ Efficient marine operations for visiting LNG carriers to save fuel, maximize uptime and eliminate risks to the
public and environment
▪ Not visible from shore
FLNG History & Outlook
First FIDs
FLNG Growth
Key Factors:
▪ Technical concepts
▪ Business Models
▪ Contract &
Execution Models
▪ Clients / partners /
stakeholders
20162007
Pioneering work
70’ies 80’ies 90’ies
Various proposal and studies
but with limited potential
▪ Production successfully kicked-off
▪ Developed as a reliable and robust production scheme
▪ Adopted and endorsed by key stakeholders(IOCs, NOCs, Independents, Buyers, Lenders, Insurers, etc.)
11
Hilli Episeyo
Tango
PFLNG-1
Prelude
In operation
FLNG is an Established Industry Technology
FLNG advantages offer great benefits for North American applications
▪ Liquefier FLNG Vessels offer significant lower costs and are proven in operation
▪ Large cost savings by re-purposing of existing offshore (obsolete) pipelines
▪ Bundling process facilities and marine terminal infrastructure
▪ Construction of the entire facility at existing Asian yard facilities in a controlled
environment, based on proven practices for construction, lowering costs and shortening
the execution schedule
▪ Enhanced control and supervision of costs and schedule in execution
▪ Minimal use of land and shore facilities
▪ Favorable financing support / credit enhancement
▪ Repeatability and standardization for subsequent vessels
▪ Redeployable
Delfin FLNGs are “Liquefiers” providing all-in costs of 500-550 $/tpa(1)
Successful execution of FLNG Hilli Episeyo
From FID to COD in less than 4 years
✓ EPC schedule 41 months
✓ Total costs (into service) << 500 $/t (on
nameplate basis)
✓ 100% commercial availability since COD in
May 2018
(1) includes all costs up to start of commercial operations (including FLNG Vessel, disconnectable mooring system, pipeline connections, owner’s costs, transit, installation,
commissioning, contingencies), excluding finance costs, on a nameplate capacity basis
12
Petronas FLNG-1Malaysia
Shell Prelude FLNGAustralia
Exmar FLNG bargeYPF Argentina
(small-scale; costs > 500 $/t)
Golar Hilli Episeyo, Cameroon
Petronas FLNG-2Malaysia
ENI Coral FLNGMozambique
BPK / Golar GimiMauritania/Senegal
Wellstream Producing FLNG Vessels
> $1000 /ton
Liquefier FLNG Vessels
< $500 /ton
“Liquefier” vs “Wellstream Producer”
Typical additional features
▪ Reservoir, well and subsea controls
▪ Multiple risers and umbilical system
▪ Flow assurance systems
▪ Inlet separation and treatment (water,
sand, impurities, liquids, etc.)
▪ Condensate / LPG separation, handling,
storage and offloading
▪ Additional utility and support systems
Delfin Liquefier FLNGReceives pipeline quality feedgas
Wellstream Producer = LNG FPSOProduces a raw wellstream from a reservoir(s)
Lower CAPEX & OPEX – Standardization – High
availability - Redeployable
Project/Field specific – additional complex process systems -
reservoir/well operations – higher CAPEX & OPEX
13
FLNG Vessel Designs
14
Common particulars for all three FLNG Vessel designs
▪ 2-train PRICO liquefaction technology with parallel drives per train
▪ Single train pre-treatment design (AGRU, Dehydration, Hg removal)
▪ Modularized topsides with air cooling for hull and topside systems
▪ Side-by-side offloading
▪ Offshore Classed and Flag with minimum 25 years design life
A. Newbuild FLNG Vessel (Delfin LNG)
▪ Completed FEED
▪ LSTK EPCIC Term Sheet negotiated
▪ Consortium of Samsung and Black & Veatch responsible under a single contract for ”EPC wrap”, with
completion, schedule and performance guarantees satisfying project finance
B. Conversion FLNG Vessel (Delfin LNG)
▪ Conversion of a modern Moss LNG carrier
▪ Lengthening of vessel with insertion of new midship section
▪ FEED completed and EPC bids received
▪ Cooperation with Chinese (or Singaporean) shipyards and Black & Veatch
C. Electric-driven Newbuild FLNG Barge (Specific North American project)
▪ Newbuild barge
▪ Electric driven (Hydro-power supply from shore)
▪ Pre-FEED completed
▪ Cooperation with Consortium of Samsung and Black & Veatch
Offshore Installation, Ship-Shaped LNG Production and Storage Unit, POSMOOR, BIS, HELIDK (optional)
FLNG NewbuildingConsortium
LSTK EPCIC
3 FLNGV Designs Provide Commercial & Geographic Flexibility
DELFIN FLNG
Delfin Newbuild FLNG Vessel
15
▪ Newbuild hull with modularized topsides, designed for 25 lifetime
▪ Nameplate capacity 3.5 MTPA
▪ 2-train PRICO liquefaction technology
▪ Gas turbine driven liquefaction with Inlet Air Chilling (IAC)
▪ Gas turbine waste-heat recovery with steam turbine power generation
▪ 4-stroke DF engines for suppl./redundant power
▪ Self-propelled vessel that can disconnect from its mooring and avoid severe hurricanes
Self-propelled vessel with 3
azimuthing thrusters
Air cooling of liquefaction,
pre-treatment systems and
utility systems
Accommodation &
Electrical rooms Train 1 (PS)Train 2 (PS)
Disconnectable
mooring
Feedgas riser
& umbilical
SBS offloading (2 berthing
stations for large LNGCs and
small-scale/bunker barges
Aft machinery spaceForward machinery &
Electrical rooms
Helideck (PS)
Inlet & pre-treatment
4x2 reinforced membrane
type LNG tanks
PRICO® SMR – Proven FLNG Technology
16
Why PRICO SMR?
▪ Well proven on onshore and floating applications
▪ Simple in operation (starting, stopping, re-starting, turn-down=
▪ Well managed technical risks
▪ Applied over a broad range of capacities & gas compositions
▪ Heavies removal integrated in the process
▪ One train = one module concept
▪ A compact system allows a ideal layout optimized with hull sizing
▪ Low topsides weight
▪ Considers environmental impact with air cooling and eliminating
emission issues
▪ Marinized technology
▪ Excellent track record for Performance Acceptance Tests
demonstrating Guaranteed Production and reliable offshore
production
▪ Proven offshore with low costs
▪ Proven offshore with very high availability
▪ Proven offshore with competitive execution schedule
▪ Proven offshore with highly competitive efficiency
▪ Proven offshore with short commissioning period
▪ Proven offshore for small footprint applications
Proven for Offshore FLNG applications
Exmar FLNG bargeYPF Argentina
(in operation)
Golar Hilli Episeyo, Cameroon(in operation)
BPK / Golar GimiMauritania/Senegal
(under construction)
OPEX & Efficiency
Liquefactionsystem
Gas turbine
HRSG Turbine GGeneral vessel
consumers
Direct-driven liquefaction and waste-heat recovery
▪ Offshore proven and efficient PRICO Single-Mixed
Refrigerant liquefaction technology (SMR also selected
by major onshore projects)
▪ Lifecycle cost and efficiency optimized design
▪ Mechanical drive of the refrigerant compressors by aero-
derivative gas turbines
▪ Inlet air chilling of the gas turbines to maximise the power
output
▪ Waste-heat recovery from the gas turbine exhausts is
used to provide process heating and to produce power for
topsides and hull consumers
▪ Direct air cooling of mixed refrigerant increases
production efficiency compared to a seawater-fresh-water
cooling system
Topside heat consumers
▪ An FLNG is an integrated and efficient design that allows OPEX to be
low (abt. 0.45 $/mmbtu on nameplate basis and less for multiple
FLNGVs in operation) and competitive to land-based facilities
▪ Delfin is in full control over the Delfin Deepwater Port allowing the Port
service costs to be well controlled (at-cost, no profit centre) and lower
than for land-based facilities (e.g. no pilotage, no inherent costs like
dredging, at-cost port fees)
▪ Being offshore allows a significant saving in time for visiting LNG carriers
and no risks of navigational delays and external factors (Pilot Unions,
congestion events, one-way-traffic, fog delays, Port fees)
IAC
World-class fuel efficiency and overall retainage performance
17
Delfin Deepwater Port – Operations
▪ The Delfin Deepwater Port will operate as a Port under MARAD and U.S. Coast
Guard authority, with Port operation manuals and procedures as any other coastal
port
▪ Advantages of the Delfin Deepwater Port versus an onshore LNG terminal:
o Delfin is 100% owner-operator controlling Port services, fees at-cost (no profits)
o High berth availability (1 berth per 3.5 MTPA) and >100 small-scale berths p.a. for
each FLNGV
o No congestion from shipping traffic or “one-way-traffic” rules (40 nm offshore)
o Less fog related navigational restrictions compared to onshore LNG plants
o No restrictions related to traffic delays, shoals or obstructions following a
hurricane
▪ Side-by-Side LNG carrier operations is a well-established practice with several
thousands performed between LNGC/FSRU and LNGC/FLNG as well as for small-
scale and bunkering applications
▪ LNG carriers will be assisted by tugs to berth alongside with Mooring Masters
assisting the LNGC captains
▪ The location is a benign location, with predominantly low and short waves concurrent
with wind directions, offering favorable SBS conditions
▪ The FLNGV is single-point moored using a disconnectable system and with
redundant heading-control thrusters
▪ The FLNGV can disconnect from the mooring and sail away on its own propulsion to
avoid any severe hurricane passing the site
Deepwater Ports have proven operations for
decades with well defined regulatory governance
Standard procedures for navigation and
cargo operations at FLNG terminals
▪ Visiting LNG carriers tender Notice-Of-
Readiness
▪ Mooring Master/Pilot will board LNGC
▪ Tugs will connect aft and forward
▪ LNGC approaches FLNG on SB side
▪ Mooring lines are transferred
▪ LNGC berthing and moored
▪ Connection of Loading Arms
▪ Cargo transfer
▪ Disconnect loading arms
▪ Disconnect mooring and depart
18
Disconnectable mooring
(Note: vessel bow is generic illustration)
Floating Units Outperform During Hurricanes
19
Leveraging best-practice from FPSO industry
▪ Disconnectable FPSOs have been operational for decades in typhoon
and cyclone areas (South China Sea, Australia, GoM)
▪ Experience have shown that disconnectable FPSOs are “the last to stop
production and the first to start-up again”
▪ The Delfin FLNG is designed with a disconnectable mooring system
and will operate similarly as disconnectable oil FPSOs
▪ A disconnectable FLNG provides less downtime than onshore plants
and secondly brings the asset in safety to minimize risk of severe
weather damage
Outline Procedure
1. Upon the risk of a severe hurricane passing the site the FLNG will stop
production, de-pressurize and de-inventorize the process systems
2. The FLNG will disconnect and sail away using its own propulsion
3. The FLNG will typically sail “left-out” from a hurricane (=wind from aft)
and seek calmer waters to ride out the storm
4. As soon as the hurricane has passed the site, the FLNG sails back,
picks up the mooring chains, gas riser and umbilical and can start-up
5. The onshore facilities for the Delfin project are pipeline systems and
compressor station that are self-supporting and can therefore restart
feedgas supply even if power supply in the area is down
6. Vessel traffic or channel restrictions in the aftermath of a hurricane will
not affect LNG carriers visiting the offshore Delfin Deepwater Port
7. Upon the unlikely event of a full hit by a severe hurricane the FLNG is
offline for typically 5-8 days0
5
10
15
20
25
30
35
40
45
FPSO-1 FPSO-2 Sabine Pass Cameron LNG
Lost
Pro
du
ctio
n (
day
s)
Example Case : Hurricane Laura (Aug 2020)
▪ Laura passed over central GoM causing two FPSOs to
disconnect and sail away
▪ Laura continued and severely hit Cameron Parish
causing full stop at Sabine Pass and Cameron LNG
▪ FPSOs returned quickly to their site in order to
commence production
▪ Sabine Pass lost 2 weeks’ production time, whereas
Cameron LNG has been off-line for many weeks
Note: Status as per early Oct.:
limited gas flow to plant
Delfin Deepwater Port – Small Scale LNG Hub
20
LNG export to nearby markets
using small-scale LNG carriers
(3,000-30,000 cbm)
LNG distribution for LNG bunkering and
other small-scale consumptions
Mexico
▪ Delfin is the owner and operator of the Delfin Deepwater Port (DWP) and therefore in full control of the operations, allowing for
supplemental small scale distribution of LNG from the FLNG Vessels
▪ The Delfin DWP will consist of 4 FLNG Vessels with a total of 13 MTPA export capacity
▪ Each vessel is fully equipped with a berth and offloading facilities (~3.5 MTPA / berth)
▪ The mooring, offloading, cargo and process systems are designed or can be amended to suit small-scale LNG carriers, with dedicated
berth facilities for small-scale compatibility
▪ Given the high berth availability, benign metocean conditions and heading control capabilities each FLNGV can provide an efficient LNG
supply hub for small scale vessels
▪ A total of 200,000 – 400,000 MTPA of small-scale supply can well be incorporated in the production planning and ADP per FLNG Vessel
NOTE: For coastal redistribution or US bunker services Jones’ Act compliant vessels are expected to load from the FLNGV
Leveraging Technology Value from Delfin LNG
Delfin Liquefier FLNGReceives pipeline quality feedgas
21
West Canada FLNG Avocet FLNG Mexico FLNG SouthTexas FLNG
Generic Liquefiers with minor adjustments to suit location specific requirements
The Delfin FLNG Technology is a generic Liquefier for use across North America
“Variations-on-a-theme”
Core Projects & Expansion Opportunities
22
Delfin LNG – 13 MTPA
(Anchor Project)
▪ Fully permitted as Deepwater Port with
MARAD/USCG and 13 MTPA DoE
Export Licence
▪ Completed conversion and Newbuild
FLNG FEEDs
▪ Executing Newbuild LSTK EPCIC
contract
Avocet LNG+ – 14 MTPA
▪ Avocet 100% owned by DMI
▪ Permitting scoping work ongoing
▪ Opportunity to acquire adjacent
pipeline (additional 6 MTPA)
▪ Evaluation for expansion / integration
with Delfin LNG project ongoing
Mexico LNG
▪ Opportunities for several FLNG
Vessels utilizing existing pipeline
capacities sourcing back to the US
▪ Opportunity to leverage existing
facilities and licences to enable a short
development timeline with limited
regulatory risks
West Canada LNG
▪ Development support work
▪ Front-end work executed
▪ LNG marketing activities
Delfin Midstream has identified over 40 MTPA of liquefaction opportunities that have access to
operating or post-FID pipelines. All locations can use Delfin’s existing FLNG design
South Texas – 7+ MTPA
▪ Pipeline screening ongoing
▪ Evaluation of gas supply options
▪ Pricing and commercial evaluations
▪ Preparing scoping work for permitting
work
23
Clear Path to the First FID and Beyond
Permits & Licenses
▪ Ample capacity in US Gulf Coast to access liquid points in Louisiana
▪ No need to build large scale pipelines for at least the first and second FLNGV
▪ Precedent agreements and commercial terms negotiated for gas transport capacity to St.44
▪ Fully permitted facility including Non-FTA export permit for up 13 MTPA
▪ Newbuild FLNGV being designed in full compliance with existing permitting
▪ Newbuild FLNG FEED completed in Q3 2020 with Samsung and Black & Veatch
▪ LSTK EPCIC term sheet developed with Samsung and Black & Veatch
▪ Conversion FLNG FEED completed for Chinese/Singapore shipyard cooperation
▪ Cooperation with Financial Advisors to structure and secure ECA support
▪ Exploring vendor/yard financing schemes
▪ Detailed offtake discussions with multiple buyers (IOC, portfolio, Traders, Utilities)
▪ Increasing Asian interest from 2nd tier consumers in the power and small-scale LNG business
▪ Strong interest for the commercial flexibility from Delfin being “smaller at lower cost”
▪ Total all-in CAPEX around 550 $/tpa on the basis of a full LSTK EPCIC wrap
▪ Significant interest in project level equity from Mezzanine and Preferred Equity providers
FEED & EPC
Pipeline Access
Debt Financing
Equity Financing
Offtake
Expansion▪ Development support for a West Canada project, executing front-end work
▪ Avocet development planning in progress
▪ Downstream expansion with small-scale, bunkering and gas-to-power opportunities
Success Factors Progress achieved