U.S. To Build Its First Ever Floating LNG Export Terminal

By Alex Kimani - Jun 11, 2026

• The U.S. has approved its first offshore floating LNG export terminal, with Houston-based Delfin Midstream receiving a license for a $5 billion FLNG project off Louisiana.
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• The project will use existing offshore pipeline infrastructure and feature the world's largest floating LNG vessel, with 90% of its initial export capacity already secured through long-term contracts and backing from major investors including BlackRock, Mitsui O.S.K. Lines, and Vitol.
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• Floating LNG terminals offer faster deployment, lower costs, and a smaller environmental footprint than traditional onshore plants

Over the past couple of years, the United States has established itself as the world's largest exporter of liquefied natural gas (LNG), with an operational liquefaction capacity of ~15.4 billion cubic feet per day (Bcf/d). It’s home to nine large-scale operating LNG export terminals and more than 170 smaller, localized LNG facilities across the country used for domestic storage and peak-demand supply. And while it has traditionally favored building massive onshore liquefaction plants to make use of huge, established pipeline networks, secure coastlines and economies of scale, that is about to change as U.S. regulators have approved the construction of the first ever LNG floating platform on American waters. The U.S. Maritime Administration (MARAD) has issued a license to Houston-based Delfin Midstream to construct a $5-billion floating liquefied natural gas (FLNG) export terminal in federal waters roughly 40 nautical miles off the coast of Cameron Parish, Louisiana. The project received initial conditional approval way back in 2017 but faced years of delays and regulatory hurdles, including a brief pause on certain LNG export permits by the Biden administration in early 2024. The Delfin LNG project will now feature the largest floating LNG vessel in the world, eventually connecting four floating LNG units to existing offshore pipelines to export gas globally.

The project will utilize the repurposed UTOS pipeline (the largest natural gas pipeline in the U.S. Gulf) to pull gas from the mainland grid at Station 44 in Johnson Bayou, Louisiana, directly to the offshore port. By employing an innovative offshore design, Delfin LNG circumvents the need for massive onshore construction by linking specialized floating liquefaction vessels directly to existing underutilized subsea pipeline networks. South Korea's Samsung Heavy Industries was officially awarded a $2.9 billion contract to construct Delfin LNG’s mammoth FLNG 1 vessel.

Following a Final Investment Decision (FID) on June 3, 2026 , first LNG production and exports are targeted to begin between 2029 and 2030. The initial vessel is designed to export 4.4 million tonnes of LNG per year, backed by long-term supply agreements with global energy giants. Indeed, nearly 90% of FLNG 1's export capacity is locked down via binding, long-term sale and purchase agreements (SPAs). The project's joint-venture equity framework includes major backing from Global Infrastructure Partners (GIP) (a division of BlackRock), Japanese shipping titan Mitsui O.S.K. Lines (MOL), and global energy trader Vitol. Debt and credit structures were facilitated by institutional lenders including MUFG, which announced a $3.6 billion financing arrangement.

Floating Liquefied Natural Gas (FLNG) and Floating Storage Regasification Unit (FSRU) terminals offer unmatched speed, cost-effectiveness and locational flexibility compared to traditional land-based plants. While land-based terminals typically require 4 to 6 years to develop and build, floating terminals can be built and become fully operational in 1 to 3 years. The hull and topside processing modules can be constructed simultaneously in controlled shipyard environments, dramatically speeding up the delivery process. Additionally, converting older LNG carriers into floating units or deploying standard floating platforms results in lower upfront installed costs compared to massive onshore developments. FLNG units allow companies to extract natural gas from remote or offshore fields that would otherwise be too expensive or uneconomical to connect to land via long pipelines.

Another major advantage of floating LNG terminals is a low environmental footprint. Many FSRUs are created by upgrading and recycling existing LNG carriers that are reaching the end of their lifespans. This conversion process saves approximately 30% of the carbon footprint compared to building a brand-new plant. They also typically have smaller environmental footprints and emit lower levels of nitrogen oxides and carbon dioxide compared to their heavy-industry onshore counterparts. 

Still, this has not made life easier for Delfin LNG.

Environmental groups have pointed out that the final license was pushed through under the Trump administration's "Unleashing American Energy" executive order without an updated amended application, a single public hearing, or adequate environmental reviews. Local advocates and environmental coalitions such as the Louisiana Bucket Brigade and Healthy Gulf have voiced strong opposition to the project due to climate threats, the impact on local fishers and safety risks in the wake of a recent pipeline explosion near Holly Beach, Louisiana, which originally delayed the project's development.

Other than Delfin Midstream, several other companies operate in the FLNG space, including Hamilton, Bermuda-based Golar LNG (NYSE:GLNG), the the pioneer in the "FLNG as a service" model and a major contractor in U.S. projects; New Fortress Energy (NYSE:NFE), Excelerate Energy (NYSE:EE), Energos Infrastructure and Cedar LNG.

By Alex Kimani for Oilprice.com