What is a Limited Notice to Proceed (LNTP) and why is it important for Delfin?

An LNTP is a preliminary contract that allows a manufacturer or contractor to begin engineering, design, and procurement of long-lead items before a final investment decision is made. For Delfin, this agreement with Siemens Energy prevents project delays and locks in critical engineering resources amid a highly competitive global supply chain for LNG equipment.

How does MidOcean Energy's involvement change the outlook for the project?

MidOcean Energy, backed by EIG, brings substantial financial credibility and global LNG marketing expertise to the Delfin venture. Their investment provides the necessary equity runway to advance engineering works and signals strong institutional confidence to potential debt providers and LNG buyers.

What are the environmental and operational advantages of Delfin's offshore FLNG design?

By locating the liquefaction technology offshore, Delfin minimizes onshore environmental footprint, avoids local community disruptions, and utilizes existing maritime pipeline infrastructure. Operationally, the modular nature of FLNG allows the company to scale up capacity incrementally by adding individual vessels as market demand dictates.

Offshore Energy · July 16, 2026 (2h ago) · 1 min read

Delfin gives Siemens go-ahead for early works on second FLNG, as EIG’s MidOcean signs up to come aboard

Analysis

AI-assisted analysis · reviewed by Yuri Kan

Delfin Midstream's issuance of a limited notice to proceed to Siemens Energy for its second floating LNG vessel, alongside securing investment interest from EIG's MidOcean Energy, marks a critical acceleration in the U.S. offshore liquefaction pipeline. This development underscores the growing commercial viability of nearshore FLNG solutions, which offer faster deployment timelines and lower capital expenditure compared to traditional onshore terminals. For global gas markets, this represents a deepening commitment to flexible, floating export infrastructure capable of rapidly addressing supply deficits in Europe and Asia.

Key Facts

Delfin Midstream has officially issued a limited notice to proceed (LNTP) to Siemens Energy to initiate early engineering works on its second floating liquefied natural gas vessel, FLNG2.
The proposed FLNG2 vessel is slated for deployment at the Delfin LNG deepwater port, located approximately 40 miles off the coast of Louisiana in the Gulf of Mexico.
EIG’s LNG-focused subsidiary, MidOcean Energy, has signed an agreement to invest in the Delfin Midstream project, bolstering the developer's financial backing.
Siemens Energy's scope of work under the LNTP includes the engineering and design of the single-impeller gas turbine compression technology required for the liquefaction process.
The Delfin LNG project is designed to support up to four FLNG vessels, yielding a total export capacity of up to 13 million metric tonnes per annum (MTPA).

Background & Context

The Delfin LNG project has been in development for several years as the first proposed deepwater port LNG export facility in the United States. Utilizing existing offshore pipeline infrastructure, the project bypasses many of the land-use and environmental hurdles associated with greenfield onshore terminals. The floating LNG concept, pioneered globally by companies like Petronas and Shell, is increasingly seen by U.S. developers as a modular, scalable way to export abundant Permian Basin feed gas to international buyers.

Market Impact

This milestone significantly de-risks the Delfin project by aligning top-tier technology providers like Siemens with heavyweight energy investors like EIG's MidOcean. The entry of MidOcean Energy brings deep institutional capital and strategic alignment, as MidOcean has been aggressively building a global LNG portfolio. For the wider market, this progress validates the offshore FLNG model in the U.S. Gulf, potentially prompting competitors to re-evaluate floating concepts to bypass onshore regulatory bottlenecks. Furthermore, it secures a future supply pipeline of highly flexible, destination-free LNG cargoes that can easily pivot between European and Asian premium markets.

What to Watch

The immediate next steps involve Siemens Energy progressing the front-end engineering design to a stage where Delfin can issue a final notice to proceed. Industry observers should watch for the formal Final Investment Decision (FID) on FLNG2, which will hinge on securing binding long-term tolling or sale and purchase agreements. Additionally, the regulatory approval timeline for the offshore pipeline connections will be a critical milestone to monitor over the next twelve months.

Frequently Asked Questions

What is a Limited Notice to Proceed (LNTP) and why is it important for Delfin?: An LNTP is a preliminary contract that allows a manufacturer or contractor to begin engineering, design, and procurement of long-lead items before a final investment decision is made. For Delfin, this agreement with Siemens Energy prevents project delays and locks in critical engineering resources amid a highly competitive global supply chain for LNG equipment.
How does MidOcean Energy's involvement change the outlook for the project?: MidOcean Energy, backed by EIG, brings substantial financial credibility and global LNG marketing expertise to the Delfin venture. Their investment provides the necessary equity runway to advance engineering works and signals strong institutional confidence to potential debt providers and LNG buyers.
What are the environmental and operational advantages of Delfin's offshore FLNG design?: By locating the liquefaction technology offshore, Delfin minimizes onshore environmental footprint, avoids local community disruptions, and utilizes existing maritime pipeline infrastructure. Operationally, the modular nature of FLNG allows the company to scale up capacity incrementally by adding individual vessels as market demand dictates.

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