Japanese shipping giant Mitsui O.S.K. Lines (MOL) has reached a Final Investment Decision (FID) to participate in the landmark Delfin FLNG 1 project, set to become the first floating liquefied natural gas (FLNG) facility in the United States and the largest FLNG project globally.
The project is being developed by Delfin Midstream alongside an investor consortium led by Global Infrastructure Partners, part of BlackRock, and energy trader Vitol.
With a total project cost of approximately US$5 billion, the venture will have an annual LNG production capacity of 4.4 million tonnes and is expected to commence commercial operations in 2030. MOL will invest approximately US$300 million, representing about 23% of the total equity contribution of US$1.4 billion, making it the first Japanese shipping company to invest directly in an FLNG project.
MOL first invested in Delfin Midstream in 2023 and has since supported the development of the offshore LNG export project. The company stated that all key conditions for project execution have now been fulfilled, paving the way for the final investment decision.
The project has secured all necessary permits and long-term LNG sales agreements with major global energy players, including Vitol, Gunvor, Centrica, and Expand Energy. A construction contract for the FLNG unit will be awarded to Samsung Heavy Industries as the project moves into the execution phase.
Located around 40 miles offshore Louisiana, Delfin FLNG 1 will receive natural gas from the U.S. mainland through existing pipeline infrastructure. The gas will be liquefied onboard the floating facility before being loaded onto LNG carriers for export to international markets.
Beyond its equity participation, MOL will contribute technical expertise gained from operating floating energy infrastructure, including Floating Storage and Regasification Units (FSRUs), as well as its experience in ship-to-ship LNG transfer operations, offshore safety management, and project financing.
The investment marks a significant expansion of MOL’s LNG business strategy. Traditionally active in LNG transportation and regasification, the company is now extending its presence further upstream into LNG production, creating a stronger position across the entire LNG value chain.
MOL said the project aligns with its long-term objective of supporting global energy security, supply diversification, and decarbonization efforts while strengthening its role as a global social infrastructure company serving communities through maritime innovation and energy solutions.