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

An LNTP is a preliminary contract that authorizes a manufacturer to begin engineering work and procure long-lead materials before the final contract is fully executed. For Delfin, this is crucial because it secures early manufacturing slots for Siemens' gas turbines and compressors, preventing potential supply chain delays that could push back the project's commercial start date.

How does Delfin's offshore FLNG concept differ from traditional US LNG export terminals?

Traditional US terminals, such as Sabine Pass or Freeport, are massive onshore facilities requiring extensive land use, storage tanks, and dedicated marine berths. Delfin's offshore model utilizes floating vessels permanently moored at a deepwater port, receiving feed gas via existing undersea pipelines, which minimizes onshore environmental impacts and avoids coastal shipping congestion.

What role does Siemens Energy play in the Delfin LNG development?

Siemens Energy is the primary technology partner responsible for the power generation and liquefaction compression systems, which serve as the 'heart' of the FLNG vessels. Their gas turbines and compressors are critical for driving the refrigeration cycles that cool natural gas into its liquid form (-162°C) for transport.

Offshore Technology · July 16, 2026 (Jul 16) · 1 min read

Delfin issues LNTP to Siemens Energy for FLNG2 vessel

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 marks a critical step forward for the Delfin LNG deepwater port project off the coast of Louisiana. This development underscores the growing momentum behind US offshore liquefaction capacity as developers seek to streamline supply chains for critical turbomachinery. By securing long-lead equipment from Siemens, Delfin is actively mitigating inflationary and supply chain pressures that have plagued recent North American LNG export projects.

Key Facts

Delfin Midstream has officially issued a Limited Notice to Proceed (LNTP) to Siemens Energy for the procurement of critical, long-lead equipment.
The agreement specifically covers major gas turbine and compressor packages destined for Delfin's second floating liquefied natural gas vessel, designated as FLNG2.
The Delfin LNG project is designed as a deepwater port located approximately 40 miles off the coast of Cameron Parish, Louisiana.
Once fully operational, the offshore facility is projected to support up to four FLNG vessels with a total export capacity of up to 13 million metric tons per annum (MTPA).
This LNTP allows Siemens Energy to commence engineering and manufacturing of the core power generation and compression systems before a final investment decision (FID) is declared for the second vessel.
Delfin's modular FLNG design utilizes existing offshore pipeline infrastructure to transport feed gas from the onshore US grid directly to the offshore berths.

Background & Context

The Delfin LNG project has been in development for several years, positioning itself as the first offshore floating liquefaction port in the United States. Unlike traditional onshore terminals, Delfin leverages repurposed undersea pipelines to transport natural gas to offshore liquefaction vessels, significantly reducing the onshore environmental footprint and simplifying the regulatory approval process. Siemens Energy has been a long-standing technology partner for the project, having previously been selected to provide the complete top-side liquefaction technology and power distribution systems for the initial FLNG vessels.

Market Impact

This development signals strong developer confidence in the long-term global demand for flexible LNG supply, particularly in Europe and Asia. By locking in manufacturing slots with Siemens Energy, Delfin reduces the risk of project delays associated with the global bottleneck in turbomachinery production. For Siemens Energy, this secures a high-value equipment contract and solidifies its position as a leading technology provider in the growing FLNG market segment. Furthermore, the progress of offshore US LNG projects provides global buyers with alternative contracting structures that bypass traditional onshore pipeline congestion on the US Gulf Coast.

What to Watch

The immediate next milestone to watch is the formal Final Investment Decision (FID) for both the first and second FLNG vessels, which Delfin has been working to finalize alongside debt financing. Industry observers will also monitor the progress of Delfin's commercial negotiations, specifically the conversion of existing heads of agreement (HOAs) into binding, long-term Sale and Purchase Agreements (SPAs). Additionally, the construction timeline at the shipyard responsible for integrating Siemens' equipment onto the FLNG hulls will be a critical indicator of the project's ultimate commercial operation date.

Frequently Asked Questions

What is a Limited Notice to Proceed (LNTP) and why is it important for this project?: An LNTP is a preliminary contract that authorizes a manufacturer to begin engineering work and procure long-lead materials before the final contract is fully executed. For Delfin, this is crucial because it secures early manufacturing slots for Siemens' gas turbines and compressors, preventing potential supply chain delays that could push back the project's commercial start date.
How does Delfin's offshore FLNG concept differ from traditional US LNG export terminals?: Traditional US terminals, such as Sabine Pass or Freeport, are massive onshore facilities requiring extensive land use, storage tanks, and dedicated marine berths. Delfin's offshore model utilizes floating vessels permanently moored at a deepwater port, receiving feed gas via existing undersea pipelines, which minimizes onshore environmental impacts and avoids coastal shipping congestion.
What role does Siemens Energy play in the Delfin LNG development?: Siemens Energy is the primary technology partner responsible for the power generation and liquefaction compression systems, which serve as the 'heart' of the FLNG vessels. Their gas turbines and compressors are critical for driving the refrigeration cycles that cool natural gas into its liquid form (-162°C) for transport.

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