Delfin Announces Completion of FEED for the Delfin Newbuild FLNG Vessel

October 11th, 2020

Today Delfin Midstream (“Delfin”) is pleased to announce the completion of FEED for the Newbuild FLNG Vessel of 3.5 MTPA nameplate capacity for the Delfin LNG Project in cooperation with Samsung Heavy Industries and Black & Veatch.

The tripartite cooperation has been successful in developing a robust, low cost and efficient FLNG Vessel design for the project. The FEED results together with the overall project development activities enable the company to execute the project for a total capital cost of around 550 $/tpa(1). Each FLNG Vessel can be developed independently, with its own commercial and financial structure, which allows Delfin to be at the lower end of the global LNG cost curve combined with the absolute lowest FID threshold of 2.0 to 2.5 MTPA firm offtake.

The Delfin Newbuild FLNG Vessel design uses the latest gas turbine technology, optimizations of the
Black & Veatch’s patented PRICO® liquefaction technology, direct air cooling and waste-heat recovery to achieve maximum fuel efficiency and minimal (GHG) emissions.

Each vessel will be equipped with two offloading facilities to service both large, ocean-going carriers
as well as the regional demand for LNG bunkering and small-scale carriers. With ultimately four FLNG
vessels in operation, the project will have 4 berths for 13 MTPA, which provides an unmatched
operational flexibility to service the bunkering and small-scale market.
In parallel to the FEED the parties have developed a Term Sheet for a Lump-Sum, Turnkey
Engineering, Procurement, Construction, Integration and Commissioning contract (“LSTK EPCIC”) as
basis for the development of a fully termed agreement.
Commenting of the Company’s progress Delfin CEO Dudley Poston said: “The successful completion
of our FEED confirms our ability to offer industry leading pricing of 115% of Henry Hub plus $2.00 for
20 year transactions. The flexibility of a low cost, floating asset also allows Delfin to offer shorter term
10 year deals for 115% of Henry Hub plus $2.40 or flexible tolling structures. Delfin continues to
advance commercial discussions with multiple buyers and end-users and the completion of our FEED
is a major milestone towards the FID of the first Delfin FLNG Vessel.”

Wouter Pastoor, COO of Delfin, added: “Recent hurricane activities in the Gulf of Mexico have
highlighted the importance of sound design and operational measures to minimize potential downtime
of LNG export facilities. The Delfin project is uniquely different since the FLNG Vessels are self-
propelled and use a disconnectable, mooring solution to allow the FLNG Vessel to sail away if a
severe hurricane passes over the site. The same technology and operational procedures have been
used for decades on oil FPSOs in tropical storm locations. The recent experiences with hurricane
Laura demonstrated the superior operations of offshore disconnectable oil FPSOs in the Gulf of
Mexico.