Delfin taps China for US floating LNG plant, but final investment decision 'challenging' -CEO

BY CHEN AIZHU / REUTERS

BEIJING (Reuters) - Delfin Midstream, developing the first floating facility to export U.S. natural gas, has sealed a preliminary 15-year sales deal with city gas distributor China Gas Holdings, Delfin founder and Chief Executive Officer Frederick Jones said.

But industry veteran Jones told Reuters in an interview that Delfin is also tapping unnamed Chinese banks to fund its ambitious $8 billion as the current global supply overhang in liquefied natural gas (LNG), with bumper exports also expected from Australia and Qatar, makes Delfin’s target of a final investment decision (FID) in 2018 challenging.

“We’d like to make an FID next year, but we have to be realistic,” said Jones, a pioneer of spot crude oil trade in the 1970s.

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