Delfin Midstream Inc. has issued a Limited Notice to Proceed to Siemens Energy Inc. for the procurement of long-lead equipment for its second floating liquefied natural gas (FLNG) production vessel, FLNG2, marking a significant milestone as the company advances the project toward a targeted final investment decision by the end of 2026.
The LNTP covers the procurement of four Siemens Energy SGT-750 gas turbines and mixed-refrigerant compressors for FLNG2, which will be located offshore Louisiana. The move is intended to secure critical manufacturing capacity and reduce project schedule risks ahead of FID.
Alongside the equipment procurement, Delfin has entered into an agreement with MidOcean Energy, an LNG company formed and managed by EIG, under which MidOcean has the option to acquire up to a 50% equity interest in FLNG2. Subject to a positive FID and customary closing conditions, MidOcean would also receive a proportional share of LNG production from the facility.
FLNG2 will replicate the design of Delfin’s first floating LNG vessel, FLNG1, which reached FID on June 3rd, 2026, and is currently under development. According to the company, adopting the same design is expected to improve cost certainty, reduce execution risks, and shorten the overall construction schedule.
The two companies are also working together on early-stage development activities for a potential third floating LNG vessel, FLNG3, with the aim of accelerating its development following FLNG2. The collaboration reflects their broader strategy to expand LNG production capacity along the US Gulf Coast to meet growing international demand.
Delfin CEO Dudley Poston said the latest milestone demonstrates the commercial progress of the company’s floating LNG platform following the positive investment decision for FLNG1. He noted that securing long-lead equipment manufacturing slots with Siemens Energy is an important step in de-risking the schedule for FLNG2, while describing MidOcean as a strategic partner with significant LNG expertise and financial strength.
MidOcean Energy CEO De la Rey Venter said the issuance of the LNTP highlights the momentum behind the FLNG2 project and reinforces the partnership between the two companies. He added that MidOcean’s potential investment aligns with its strategy of building a diversified and cost-competitive global LNG portfolio, while noting that the repeat-design approach offers execution efficiencies and an attractive risk-return profile.
FLNG2 is expected to have a nameplate production capacity of 4.4 million tonnes per annum (mtpa), utilising Siemens Energy’s SGT-750 gas turbines and mixed-refrigerant compression technology. The facility will be moored offshore Louisiana in the Gulf of America and connected to existing offshore pipeline infrastructure through the Delfin Deepwater Port. The project is part of Delfin’s phased multi-vessel development strategy, with existing port infrastructure expected to support future expansions.
Upon reaching a positive FID, the project is expected to proceed to a Full Notice to Proceed (FNTP), followed by the execution of the broader engineering, procurement and construction (EPC) scope.
For more information visit www.midoceanenergy.com
