Mitsui O.S.K. Lines, Ltd. (MOL) has officially joined an offshore floating liquefied natural gas (“FLNG”) development as an investor following a Final Investment Decision (FID) reached alongside Delfin Midstream, Inc., a group of investors led by Global Infrastructure Partners (GIP), a part of BlackRock, and Vitol. The project, known as Delfin FLNG 1, is set to become the first floating liquefaction facility in the United States and the largest FLNG project globally.
Designed with an annual LNG nameplate production capacity of 4.4 million tons, Delfin FLNG 1 is expected to achieve first production in 2030. The development carries an estimated total project cost of approximately USD 5 billion, while total equity contributions from investors amount to approximately USD 1.4 billion. Under the investment structure, MOL intends to contribute approximately USD 300 million, equivalent to approximately 23% of the total equity contribution, making it the first Japanese shipping company to invest in an FLNG project.
MOL’s involvement in the project dates back to 2023, when it invested in Delfin Midstream, Inc. Since then, the company has supported development activities while conducting a commercial evaluation of Delfin FLNG 1. Following the satisfaction of all conditions required for project realization, the partners proceeded with the FID. The project has already secured all permits and licenses necessary for construction and has signed long-term LNG sales agreements with Vitol and Gunvor, two of the world’s leading LNG trading companies; Centrica, a major U.K. energy company; Expand Energy, a major U.S. natural gas producer. As part of the FID milestone, a construction contract for the FLNG unit will be executed with Samsung Heavy Industries Co., Ltd., allowing the project to enter its execution phase ahead of commercial operations.
Beyond its equity participation, MOL will contribute technical expertise developed through offshore floating facility projects, including Floating Storage and Regasification Units (FSRU), as well as operational and safety knowledge gained from ship-to-ship cargo transfer operations and financial management capabilities. Natural gas transported as LNG is reduced to approximately 1/600 of its gaseous volume, making it more efficient for global transportation. Unlike traditional onshore liquefaction plants, FLNG facilities process gas offshore, reducing impacts on nearby communities while providing operational flexibility by avoiding congested shipping routes. In addition, FLNG units can disconnect from mooring systems and relocate to safer waters during severe weather events such as hurricanes, helping minimize potential damage.
For Delfin FLNG 1, feed gas will be sourced from the U.S. mainland and delivered through existing pipelines to a liquefaction facility situated approximately 40 miles offshore along the southern coast of Louisiana. After liquefaction onboard the FLNG vessel, the LNG will be loaded onto LNG carriers and shipped to customers.
Drawing on expertise accumulated through operating the world’s largest LNG fleet, MOL has expanded into downstream LNG activities through assets such as FSRUs and power generation vessels. Participation in this project extends the company’s presence into upstream segments closer to LNG production, complementing its existing LNG transportation, receiving, and regasification activities.
Through this expansion, MOL aims to strengthen its LNG business across the entire value chain and contribute to the diversification, stability, and decarbonization of global energy supply. Through the experience and expertise it has cultivated to date, the MOL Group aims to grow into a global social infrastructure company that supports people’s daily lives from the oceans, opens the door to a prosperous future, and delivers new value to all stakeholders.
