America's first floating LNG export facility reaches milestone to begin construction

Delfin Midstream, which is planning to build the nation's first liquefied natural gas export facility, reached a $5 billion Final Investment Decision (FID) to begin construction. 

The project will be located in federal waters about 47 miles off the coast of Louisiana and will operate at water depths of 72 feet. Once complete, it will be the largest floating LNG facility in the world. Samsung Heavy Industries will be constructing the facility. 

In a capital-intensive project, a FID is a crucial step in which a company's board of directors formally approve proceeding with the development. 

The project received its Deepwater Port license in May. It expects to begin production in 2030, which will add 4.4 million metric tons per year to the United States' LNG export capacity. Future plans include the construction of two additional LNG vessels, which will be launched next year. At full capacity, the facility will export approximately 1.8 billion cubic feet of natural gas per day. 

The U.S. currently exports about 15 billion cubic feet per day, according to the U.S. Energy Information Administration.