delfin midstream

Delfin Midstream- North American LNG export using FLNG

Corporate Presentation - December 2021

Business Model & Expansion opportunities

Delfin LNG Project

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FLNG Technology & Operations4

Outlook5

Table of contents

Introduction to Delfin Midstream

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Delfin Midstream in brief

✓ Leading developer of North America LNG export projects using FLNG technology

▪ Lower costs & FID thresholds than other US LNG export opportunities

▪ Experienced management with proven FLNG, FSRU and LNGC track record

▪ Significantly more commercial and operational flexibility vs land-based projects

▪ Completed low carbon e-FLNG preFEED and developing other ESG solutions

✓ Fully permitted and required pipelines and infrastructure in place

▪ Owner of the 42” UTOS offshore pipeline and access agreement for 42” HIOS pipeline

▪ Large number of existing underutilized pipeline connections to liquid gas pools in the area

▪ Non-FTA export licensed from DOE for 13 MTPA

▪ Completed all permitting work with MARAD & USCG

▪ Newbuild FLNG – FEED completed with Samsung & Black & Veatch

✓ Low cost, flexible asset allows significantly more commercial flexibility

▪ Each FLNG vessel can be executed as an independent project

▪ Standard SPA offer of 115% of HH plus $2.00 for 20 years. Shorter term also available

▪ HH indexed FOB SPAs, tolling, integrated upstream structures (indexed to LNG prices with a cap

and floor) and other bankable structures are possible

✓ Offshore floating project at a dedicated port

▪ 2-3 times more berth space per unit of production compared to land-based projects

▪ Allows wider loading windows, Small scale and LNG bunkering, easy port access

Leading developer of LNG export projects in North America using FLNG

Fully permitted deepwater port with

13 MTPA

Non-FTA export license capacity

(4 FLNG Vessels)

Competitive FID threshold of

2.0 – 2.5 MTPA

per FLNG Vessel with full

commercial flexibility

Low cost US LNG of

~$550 /tpa

reflecting attractive cost advantage

compared to most US projects

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Competitive, all-in capex of

~$2bn per FLNGV

vs ~$8-12bn for

land-based terminals

UTOS

Pipeline(42”, 26nm)

HIOS


WC 167

FLNGV3

FLNGV2FLNGV4

Grand

Chenier


FLNGV5

FLNGV6

Station 44 Grand ChenierStation

WC 171

Delfin LNG Avocet LNG

FLNGV1

Delfin Midstream - US Gulf LNG export projects


Exmar FLNG barge

Argentina

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Bringing the most experienced FLNG players together for a low-cost FLNG

Extensive experience in commercial and technical

development of floating assets:

✓ >150 years combined LNG industry experience at senior mgmt

✓ Executed commercial agreements and project management for

multiple FSRUs

✓ Executed commercial agreements and EPC for Golar Hilli FLNGV

✓ Negotiated first FLNG LSTK EPCIC with Samsung

Successful execution of FLNG Hilli Episeyo on budget

and on time (From FID to COD in less than 4 years):

✓ EPC schedule 41 months

✓ Total costs (into service) < $500/t (nameplate basis)

✓ 100% commercial availability since COD in May 2018

Floating LNG competence enabling Delfin to expand

into new FLNG projects and integrate shipping and

floating regasification into a value chain JV

▪ World’s first Lump Sum Turn-Key EPCIC for FLNG developed by FLEX LNG with

Samsung Heavy Industries in 2008

▪ Successful construction of newbuild FLNGs (Prelude, PFLNG-2, Coral FLNG)

▪ World’s first conversion FLNG executed and successful in operation (Golar’s Hilli)

with Black&Veatch topside design and PRICO liquefaction technology

▪ Process and topside contractor for Exmar FLNG and FLNG Gimi

Successful FLNG projects

Petronas FLNG 2

Malaysia

Golor Hilli FLNG

Cameroon

Oscar Spieler – Executive Chairman

▪ Previous CEO of Golar LNG, Frontline and Sea Production, currently boardmember of

Quantafuel

▪ Board experience from multiple companies within the shipping, drilling and finance sectors, incl.

OMP, Energy Drilling, Jasper Investments, Archer, Avenir LNG, North Atlantic Drilling and Sealift

▪ M.Sc. in Naval Architecture and Engineering from the Norwegian University of Science and

Technology

Dudley Poston, CEO

▪ EVP at Golar LNG from 2010-2018, focusing on the commercial development of Floating

Storage and Regasification Units, Floating Liquefaction, and small-scale LNG

▪ Prior to joining Golar, 16 years of experience in the U.S. natural gas industry as a financial and

physical trader for Koch Industries, The Williams Companies, and Citigroup

▪ B.A. in Government from the University of Texas, M.A. in Economics from The State University

of New York, and M.S. in Finance from Texas A&M University

Wouter Pastoor, COO

▪ Head of Commercial and Director of FLNG Development at Golar from 2014 to 2018, focusing

on the Hilli, Fortuna and Tortue projects and leading new FLNG design & business

developments

▪ Prior to joining Golar, 13 years of experience in the LNG industry, primarily focused on technical

and commercial development of Floating LNG projects at FLEX LNG, Höegh LNG and BWO

▪ Ph.D. and M.Sc. in Naval Architecture and Ship Hydromechanics from the Delft University of

Technology in the Netherlands

Golar Gimi

Senegal

Highly experienced team with unique track record

Shale revolutionFloating LNG revolution

>45 FSRUs have opened up

new markets and many new

import countries, importing 10-

15% of global LNG supply

7 FLNGs in operation or under

construction (supplying ~5%

of global LNG)

The combination:

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The LNG market is stuck with traditional models that do not address the world’s demand for

low cost, flexible LNG to become a preferred fuel-of-choice over coal and liquids

▪ The traditional model is pursuing “economies-of-scale” with major projects of 10+ MTPA requiring many long-term offtake

contracts to underpin the financing

▪ The world markets need low-cost, flexible LNG supply and has limited capacity to underpin major conventional projects

▪ The solution: Standardized floating LNG allows the costs to be 20-40% cheaper with FID thresholds of just 2.0 - 2.5 MTPA

Delfin is in the front seat of the floating LNG revolution

Capitalizing on two major industry revolutions

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Delfin in the LNG value chain

F S R UF L N G LNGC

REGAS

Upstream supply &

transportationPipeline Liquefaction Offtake

Regasification

/ end users

End users(power, industry, heating, domestic

use, etc..)

▪ Owns the 42” UTOS pipeline

▪ Access agreement for 42”

HIOS pipeline

▪ 100% owner of 30” Grand

Chenier pipeline through

Avocet LNG

▪ Other easy-accessible gas

sources

▪ All permitting work

completed

▪ 13 MTPA export license

▪ Advanced discussions on

offtake with multiple

potential partners

▪ Newbuild FLNG FEED

completed

▪ Owner and operator of the

Delfin Deepwater Port

▪ 4 FLNG projects with a total

of 13 MTPA export capacity

▪ Successful development of

expansion projects

Highly attractive project portfolio and expansion opportunities in the value chain

Opportunistic approach to strategic partnerships in the value chain new commercial models


Delfin LNG Project

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Outlook5

Table of contents

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▪ Utilizing existing pipelines

▪ No need for new onshore pipelines

▪ Low-cost Asian labor

▪ Standardization of generic liquefier FLNG

technology

▪ Manufacturing-like construction process

in shipyard

▪ Construction at existing yard which

eliminates investments on sites and

utilities to enable plant fabrication

▪ LNG offloading is done in a side-by-side

configuration, which eliminates the need

for long cryogenic pipelines and marine

infrastructure (the LNGC berth is an

integral part of the FLNG)

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Lower costs & project viability thresholds than competitors = Faster time to FID

Material cost savings achieved through:

Lower unit costs and lower FID threshold enable:

✓ Discounted pricing (Tolling fee / LNG price)

Standard offer of 115%HH + $2.00 for 20 year term or 115%HH +

$2.40 for a 10 year term

✓ Shorter terms of LNG

15, 12 or even 10 years

✓ Flexible pricing

Flexible tolling fee fluctuating between a floor and a ceiling based

on an agreed index (HH, JKM, TTF, Brent, blend, etc.)

✓ Higher FID likelihood

With just ~2.5 MTPA sold, Delfin can take FID on a FLNG Vessel

✓ Enhanced commercial flexibility

Each FLNG Vessel will have its own commercial/financial

structure and its own FID. Each FLNGV can therefore have its

own model tailored to its Clients, e.g. Upstream producers can

develop a 50% FLNG export position with just 250 mmscfd of their

gas production portfolio

✓ Offtaker equity participation

With each FLNG Vessel having its own FID, commercial structure

and ownership it allows equity participation to Clients

✓ Slot flexibility

Delfin can offer slot flexibility to Clients that wish to maintain

optionality on their FID timing

✓ Reduced environmental footprint

Enhanced environmental performance to reduce overall footprint

20-40% lower Capex compared to land-based Projects

The most competitive North American LNG

Commercial Structuring – Maximum Flexibility

Financing of US Export Projects

▪ Financing is a key commercial constraint for each project

▪ US projects have been financed on the back of HH+ offtake

commitments with credit worthy offtakers or long-term tolling

agreements

Delfin is Uniquely Different

▪ FID in smaller increments at lower unit costs

▪ Built in an Asian shipyard supporting vendor and Export Credit Agency

financing

▪ Each FLNG Vessel can make FID independently, with it’s own

financing and commercial model

▪ Flexible asset, which can be re-deployed (facilitate shorter contracts,

asset intrinsic value)

A) Traditional Toll or HH Indexed FOB (10-20 years)

Toll can be flexible and be partially indexed to LNG prices, Brent, or

other indices or a mix in cooperation with Buyer or Producer

B) Integrated Upstream-Liquefaction Joint Venture

Reserves+FLNG vessel are in a JV that produces gas, transports gas

to the FLNG vessel and sells FOB LNG (on an index basis)

C) Strategic Partnerships (e.g. Traders/Producers)

Delfin and Partner Joint Venture with (certain) balance sheet support

from Partner(s) supporting debt financing

D) Integrated LNG-to-Power project

Delfin contributes a dedicated FLNG slot to an integrated value chain

development, creating full value chain alignment

E) LNG FOB to bunker / small-scale buyers

Bunkering and small-scale volumes sold on small parcel basis

Illustration of Delfin’s commercial optionality

UTOS Avocet

HIOS

FLNGV-1 FLNGV-2

FLNGV-3 FLNGV-4

FSRU

LNGC

Gas-to-Power

Gas distribution

LNG break-bulk

Upstream hydrocarbon reserves

Upstream Integration /

Upstream led marketingJV of upstream reserves with

a dedicated FLNGV slot

selling LNG on SPA basis or a

Producer led LNG FOB sale

Downstream IntegrationJV of liquefaction and

downstream market

Toll / LNG SPA FOB(e.g. fixed, flexible, HH, Brent,

TTF, JKM, mixed, . . .)

LNG DES SPA(e.g. fixed, flexible,

HH, Brent, TTF, JKM,

mixed, . . .)

LNGC

LNG bunkering FOB

LNGC Bunker

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Participation options throughout the value chain for LNG Buyers, Strategic Investors or

other Key Stakeholders (yards, financiers) in an LNG value chain development

A Differentiated Business Model

Floating LNG ImportLNG Offtake, Shipping &

Arbitrage

FLNG Ownership

and O&M

Upstream supply &

Transportation

Opportunity for co-ownership, participation and local contents

▪ Refurbishment and conversion of LNGC into FSRU

▪ Fabrication of mooring components▪ Co-ownership and operations

▪ LNG Offtake (DES / FOB / Tolling)

▪ Shipping▪ Commercial /logistics

optimisation

▪ Local fabrication and construction of parts of the FLNG scope as subcontractor to main EPC contractor

▪ Option to produce/procure North American shale gas as feed gas supply for liquefaction onboard the FLNGV (=integrated project)

F S R U F L N G

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LNGC

FLNG

Construction

▪ Co-ownership in FLNG Vessel

▪ O&M development and participation

REGAS

Leveraging Technology Value from Delfin LNG

Delfin Liquefier FLNGReceives pipeline quality feedgas

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Canada FLNG Avocet FLNG Mexico FLNG SouthTexas FLNG

Generic Liquefiers with minor adjustments to suit location specific requirements

The Delfin FLNG Technology is a generic Liquefier for use across North America

“Variations-on-a-theme”

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Delfin LNG – 13 MTPA

(Anchor Project)

▪ Fully permitted as Deepwater Port with

MARAD/USCG and 13 MTPA DoE

Export Licence

▪ Completed conversion and Newbuild

FLNG FEEDs

▪ Financial structuring and full LSTK

EPCIC contracting

Avocet LNG – 14 MTPA

▪ Avocet 100% owned by DMI

▪ Permitting scoping work ongoing

▪ Opportunity to acquire adjacent

pipeline (additional 6 MTPA)

▪ Evaluation for expansion / integration

with Delfin LNG project ongoing

Mexico LNG

▪ Opportunities for several FLNG

Vessels utilizing existing pipeline

capacities sourcing back to the US

▪ Opportunity to leverage existing

facilities and licences to enable a short

development timeline with limited

regulatory risks

Cedar LNG

▪ Successful completion of preFEED

▪ Divested shareholding, but maintaining

an economic interest in the project

▪ Continuing supporting the Cedar project

Delfin Midstream has identified over 40 MTPA of liquefaction opportunities that have access to

operating or post-FID pipelines. All locations can use Delfin’s FLNG technology

South Texas – 7+ MTPA

▪ Pipeline screening ongoing

▪ Evaluation of gas supply options

▪ Pricing and commercial evaluations

▪ Preparing scoping work for permitting

work

Eastern Canada – 4-8 MTPA

▪ Existing Offshore Oil Production

▪ Stranded Gas can be piped to shore

▪ Cost Competitive with USGC Into NW Europe

▪ Requires Gas Pipeline

Attractive expansion opportunities

Multiple options for liquefaction expansion beyond the first 4 FLNG vessels

Dual Expansion – Capacity and Value Chain

Anchor Project

(13 MTPA)

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UpstreamGas

Aggregation & Transport

Liquefaction ShippingRegas & Terminal

Pipeline & Power Plant

Distribution

Cedar LNG(1)

(3 MTPA)

Avocet LNG+

(14 MTPA)

Mexico LNG

(3.5 MTPA)

South Texas LNG

(7+ MTPA)

Integrated Project: LNG-to-Power

Integrated Project: Small-scale distribution

Integrated Project: LNG Bunkering

Integrated Projects

Upstream & FLNG

▪ Capacity expansion opportunity of 30+ MTPA by leveraging its 13 MTPA anchor project

▪ FLNG Vessel slots allow integration into the value chain Upstream and Downstream

Notes: (1) Delfin divested its shareholding but maintains an interest and continues supporting the project


Delfin LNG Project

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Outlook5

Table of contents

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15

LSTK EPCIC

FLNG #1 Project Co.

“Client”(Toller, FOB Buyer, Producer,...)

Lenders

InfrastructureFunds

FLNG #4

Tolling /

LNG SPA

FLNG #3

Project debt

Project equity

Gas Co./ Pipeline Co

GSA

(in case of LNG SPA)

Mooring &Installation

EPCI

Delfin LNG project

FLNG #2

Etc. . .

AvocetExpansion

project 3Etc. . .

Indicative Project & Contracting Structure Project Infrastructure

UTOS


HIOS


WC 167

FLNGV3

FLNGV2

FLNGV4

Station 44

Delfin LNG

FLNGV1

Delfin LNG Compressor

Station

O&M Services

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Permitting Success

Major Milestones Accomplished

▪ DOE approval to export gas to Free Trade Agreement (“FTA”) countries

▪ Pre-filing work for Maritime Administration (“MARAD”) and Federal Energy Regulatory Commission (“FERC”) permits

▪ Formal submission of MARAD and FERC permits

▪ Receipt of MARAD determination that application was “complete”

▪ Successful modification of application for change in technical design

▪ Receipt of Draft Environmental Impact Statement (“DEIS”)

▪ Receipt of Final Environmental Impact Statement (“FEIS”)

▪ Receipt of Record of Decision (“ROD”)

▪ DOE approval to export gas to Non-Free Trade Agreement (“FTA”) countries

▪ FERC Order Received for Land-based infrastructure

Notable Reports / Ancillary Permits

▪ Application to Louisiana Department of Natural Resources

▪ Application to US Army Corps of Engineers

▪ Coastal Zone Management Consistency Certification for Louisiana

▪ Coastal Zone Management Consistency Certification for Texas

▪ US Environmental Protection Agency (“EPA”) Region 6 Permit

▪ Louisiana Department of Environmental Air Permit for onshore facilities

▪ Port Operations Manual

▪ Various modeling reports – air, noise, dispersion, spill consequence

▪ 12 resource reports for FERC Certificate of Public Convenience and Necessity

Successfully Permitted the First FLNG Project in North America

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Permitting of Avocet and expansion projects in Gulf of Mexico will

leverage from the Delfin development and permitting work

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▪ Multiple options have been identified allowing Delfin

to secure pipeline capacity for the first 2 or 4

FLNGVs

▪ Pipeline capacities can be increased by adding

compression and/or reversals. No new pipe required

▪ Detailed discussions with several pipeline companies

to access volumes from multiple basins –

Haynesville, Marcellus, Barnett and Permian

▪ Given the smaller capacity needed per FLNG Vessel

FID there is ample opportunity to utilize existing

underutilized pipelines

▪ Additional expansions can be created by looping

additional pipe

▪ Off-takers may prefer accessing their own gas or gas

can be provided by Delfin or a 3rd party trader

Lake Charles

Port Arthur

Delfin

Deepwater Port

UTOS Avocet

HIOS

Detailed discussions on pipeline capacity to serve the first FLNG Vessels

Source: Company information, EIA

No need to build new onshore pipelines

Delfin FLNG Vessel

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Self-propelled vessel

with 3 azimuthing

thrusters

Air cooling utility systems

Accommodation &

Electrical rooms

Train 1 (PS)

Train 2 (PS)

Disconnectable

mooring

Feedgas riser

& umbilical

Marine Loading Arms

Aft machinery space

Helideck (PS)

Inlet & pre-treatment

Forward machinery &

Electrical rooms

4x2 reinforced membrane

type LNG tanks

Air coolers for liquefaction

and process utility systems

Lowest cost LNG - Smallest FID threshold - Maximum commercial flexibility

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Partly BrownfieldLeverage Existing

Infrastructure

Minimal

Environmental ImpactCompact Design Offshore

Delfin

LNG

Source: Oxford Energy Studies (“Delfin LNG” added by Company, including an assumption

of 1.2% CO2 in feedgas being removed and included in the GHG calculation)

Delfin FLNG - GHG Efficiency

▪ Efficient, optimized PRICO® liquefaction

▪ Direct Air Cooling

▪ Inlet Air Chilling (IAC) for maximum production

and efficiency

▪ Waste-heat recovery for process heating and

main power generation

▪ Supplemental power by efficient DF generators

▪ No venting and flaring in normal operation

A. Electric-drive FLNG

B. Carbon-capture & Offshore

sequestration

C. Carbon-capture & short-sea

CO2 shipping

CO2 capture

F L N G

CO2Offshore sequestration

CO2 capture

LiquidCO2

F L N G

CO2 shipping for distribution

to consumers

Feedgas

Feedgas

E-driveliquefaction

E- F L N G

Feedgas

Renewable Power

CO2

Being offshore Delfin is uniquely positioned to develop carbon-neutral production solutions

Delfin LNG – Unique Environmental Characteristics

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Completed pre-FEED for electric driven FLNG - Delfin e-FLNG

e-FLNG

▪ Pre-FEED conducted by leveraging the

Delfin FLNG FEED design

▪ The Delfin e-FLNG is a 2-train liquefier

FLNG using PRICO® liquefaction

technology

▪ Developed to receive renewable power

supply from shore

▪ Specific design solutions developed to

address the e-drive particulars:

o power supply & management,

o electric drive technologies

o process heat,

o HHC removal & disposal,

o nitrogen rejection

▪ Delfin developed e-FLNG for the Cedar

LNG project

The application of an e-FLNG can reduce GHG emissions by ~75%

Future Potential: e-FLNG


Delfin LNG Project

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Outlook5

Table of contents

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FLNG History & Outlook

First FIDs

FLNG Growth

Key Factors:

▪ Technical concepts

▪ Business Models

▪ Contract &

Execution Models

▪ Clients / partners /

stakeholders

20162007

Pioneering work

70’ies 80’ies 90’ies

Various proposal and studies

but with limited potential

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Hilli Episeyo

Tango

Gimi(1)

PFLNG-1

Prelude

PFLNG-2

Coral FLNG(1)

In operation /

construction

(1) Under construction

Original business model

“Monetization of stranded reserves”

The technology:

LNG FPSO

15 years later: 2 types of FLNG(see next slide for details)

Liquefier FLNG

LNG FPSO

A

B

A

B

“Liquefier” vs “Wellstream Producer”

Typical additional features

▪ Reservoir, well and subsea controls

▪ Multiple risers and umbilical system

▪ Flow assurance systems

▪ Inlet separation and treatment (water,

sand, impurities, liquids, etc.)

▪ Condensate / LPG separation, handling,

storage and offloading

▪ Additional utility and support systems

Delfin Liquefier FLNGReceives pipeline quality feedgas

Wellstream Producer = LNG FPSOProduces a raw wellstream from a reservoir(s)

Lower CAPEX & OPEX – Standardization – High

availability - Redeployable

Project/Field specific – additional complex process systems -

reservoir/well operations – higher CAPEX & OPEX

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A

B

Liquefier FLNG + North America = “Win-Win”

The Benefits

A. Low cost & low complex FLNG design

B. Minimal execution risk

C. No upstream risks

D. No country / political risks

E. Abundant, low-cost gas with standardized pipeline quality specs

F. Lower financing costs (infrastructure not upstream/country risk)

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Petronas FLNG-1Malaysia

Shell Prelude FLNGAustralia

Exmar FLNG bargepast YPF Argentina

Golar Hilli Episeyo, Cameroon

Petronas FLNG-2Malaysia

ENI Coral FLNGMozambique

BPK / Golar GimiMauritania/Senegal

Wellstream producing FLNG > $1000 /ton- Bespoke solution for a dedicated reservoir -

Liquefier FLNG vessels < $500 /ton- Standardized solution for pipeline quality gas -

Successful delivery and operational performance

Lower CAPEX & OPEX – standard process systems –

high availability - redeployable

Significant execution and performance risk

High CAPEX & OPEX – bespoke, complex process systems –

reservoir/well operations – upstream risk

Delfin’s Strategy:

Leveraging the success of liquefier FLNG solutions

Step 1: Standardized generic ‘liquefier FLNG design’

Step 2: Manufacturing style of construction under LSTK EPCIC

Step 3: Apply to the North American market

Step 4: Build multiple units

✓ X

Successful execution and production performance

From FID to COD in less than 4 years

✓ EPC schedule 41 months

✓ Total costs (into service) < $500/tpa (on nameplate basis)

✓ 100% commercial availability since COD in May 2018

Source: Golar, Company Information

Higher costs and higher risks

✓ Higher execution and performance risk

✓ Higher CAPEX and OPEX

✓ Bespoke and complex process and support systems

✓ Oil Co. / Major Utility execution/cooperation models

FLNG Vessel Designs

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Common particulars for all three FLNG Vessel designs

▪ 2-train PRICO liquefaction technology with parallel drives per train

▪ Single train pre-treatment design (AGRU, Dehydration, Hg removal)

▪ Modularized topsides with air cooling for hull and topside systems

▪ Side-by-side offloading

▪ Offshore Classed and Flag with minimum 25 years design life

A. Newbuild FLNG Vessel (Delfin LNG)

▪ Completed FEED

▪ LSTK EPCIC Term Sheet negotiated

▪ Consortium of Samsung and Black & Veatch responsible under a single contract for ”EPC wrap”, with

completion, schedule and performance guarantees satisfying project finance

B. Conversion FLNG Vessel (Delfin LNG)

▪ Conversion of a modern Moss LNG carrier

▪ Lengthening of vessel with insertion of new midship section

▪ FEED completed and EPC bids received

▪ Cooperation with Chinese (or Singaporean) shipyards and Black & Veatch

C. Electric-driven Newbuild FLNG Barge (developed for Cedar LNG)

▪ Newbuild barge

▪ Electric driven (Hydro-power supply from shore)

▪ Pre-FEED completed

▪ Cooperation with Consortium of Samsung and Black & Veatch

Offshore Installation, Ship-Shaped LNG Production and Storage Unit, POSMOOR, 1A, R, BIS, HELIDK (optional)

FLNG NewbuildingConsortium

LSTK EPCIC

3 FLNGV designs provide commercial & geographic flexibility

FEED Completed

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1. Robust, safe and efficient

2. Accurate and detailed cost build-up

3. LSTK EPCIC Term Sheet enabling project finance

4. Leverage and enhance offshore proven PRICO® design

5. Minimize environmental impact and maximize fuel efficiency

6. Robust design and procedures to avoid severe hurricanes

7. Include LNG bunkering and small-scale offloading facilities

8. Leverage most experienced FLNG players using standardized

solutions and shipbuilding practices in a collaboration of

partnership and trust

Key Contractors

Based on the generic 2-train FLNG design Delfin is

developing location-specific applications for additional

North American projects, e.g. hydropower electric-driven

FLNG concept producing “low carbon” LNG for the Cedar

LNG project

PRICO® SMR – Proven FLNG Technology

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Why PRICO SMR?

▪ Well proven on onshore and floating applications

▪ Simple in operation (starting, stopping, re-starting, turn-down)

▪ Well managed technical risks

▪ Applied over a broad range of capacities & gas compositions

▪ Heavies removal integrated in the process

▪ One train = one module concept

▪ A compact system allows a ideal layout optimized with hull sizing

▪ Low topsides weight

▪ Considers environmental impact with air cooling and eliminating emission

issues

▪ Marinized technology

▪ Excellent track record for Performance Acceptance Tests demonstrating

Guaranteed Production and reliable offshore production

▪ Proven offshore with low costs

▪ Proven offshore with very high availability

▪ Proven offshore with competitive execution schedule

▪ Proven offshore with highly competitive efficiency

▪ Proven offshore with short commissioning period

▪ Proven offshore for small footprint applications

Proven for Offshore FLNG applications

Exmar FLNG bargeYPF Argentina

(in operation)

Golar Hilli Episeyo, Cameroon(in operation)

BPK / Golar GimiMauritania/Senegal

(under construction)

Maximum Production Performance & Efficiency

Liquefactionsystem

Gas turbine

HRSG Turbine GGeneral vessel

consumers

Direct-driven liquefaction and waste-heat recovery

▪ Offshore proven and efficient PRICO® Single-Mixed

Refrigerant liquefaction technology

▪ Lifecycle cost and efficiency optimized design

▪ Mechanical drive of the refrigerant compressors by aero-

derivative gas turbines

▪ Inlet air chilling of the gas turbines to maximise the power

output

▪ Waste-heat recovery from the gas turbine exhausts is

used to provide process heating and to produce power for

topsides and hull consumers

▪ Direct air cooling of mixed refrigerant increases

production efficiency compared to a seawater-fresh-water

cooling system

▪ Efficient 4-stroke DF engines for supplemental power

Topside heat consumers

▪ Nameplate production of 3.5 MTPA (365 days x 24 hrs, stored in

tank))

▪ High availability and reliability by simplified design, selection of

proven equipment and dedicated sparing design

▪ Selection of latest LM2500 gas turbine design (+G5 model) providing

extra power, better efficiency and enhanced waste-heat recovery,

further enhanced by Inlet Air Chilling

▪ Integrated Heavy Hydro Carbon removal and fuel use

▪ Robust design capable to process a wide feedgas spectrum

IAC

World-class fuel efficiency and overall retainage performance, inherently providing a reduced GHG emission profile

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DELFIN FLNG

Two identical liquefaction trains on the port side of

the FLNG Vessel (1 train = 1 module)

Delfin Deepwater Port – Offloading Operations

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Standard procedures for navigation and

cargo operations at FLNG

▪ Visiting LNG carriers tender Notice-Of-

Readiness

▪ Mooring Master/Pilot will board LNGC

▪ Tugs will connect aft and forward

▪ LNGC approaches FLNG on SB side

▪ Mooring lines are transferred

▪ LNGC berthing and moored

▪ Connection of Loading Arms

▪ Cargo transfer

▪ Disconnect loading arms

▪ Disconnect mooring and depart

Note: Calcasieu Ship Channel Traffic Study, AUSENCO

0

10

20

30

40

50

60

70

Sabine Corpus Freeport Cameron Delfin Cedar

Sto

rage

per

1 M

TPA

cap

acit

y (x

10

00

m3

)

▪ The Delfin Deepwater Port will operate as a Port under MARAD and U.S. Coast Guard authority,

with Port operation manuals and procedures as any other coastal port

▪ As part of the DWP permitting a Draft Port Operations Manual has been prepared for review

with USCG

▪ Advantages of the Delfin Deepwater Port versus an onshore LNG terminal:

o Delfin is 100% owner-operator controlling Port services, fees at-cost (no profits)

o High berth availability (1 berth per 3.5 MTPA)

o No congestion from shipping traffic or “one-way-traffic” rules (Delfin Deepwater port is abt. 40

nm offshore) (compare to Calcasieu Ship Channel, see note)

o Less fog related navigational restrictions compared to onshore LNG plants

o No restrictions related to traffic delays, shoals or obstructions following a hurricane

o Benign metocean conditions with concurrent wind and waves and minimal swell allows a

high uptime for cargo transfer operations

o The FLNG can disconnect from the mooring and sail away on its own propulsion to avoid any

severe hurricane passing the site

Floating Units Outperform During Hurricanes

30

0

5

10

15

20

25

30

35

40

45

FPSO-1 FPSO-2 Sabine Pass Cameron LNG

Lost

Pro

du

ctio

n (

day

s)

Example Case : Hurricane Laura (Aug 2020)

▪ Laura passed over the central Gulf of Mexico causing

two FPSOs to disconnect and sail away

▪ Laura continued and severely hit Cameron Parish

causing full stop at Sabine Pass and Cameron LNG

▪ The FPSOs returned quickly to their site in order to

commence production

▪ Sabine Pass lost 2 weeks’ production time, whereas

Cameron LNG has been off-line for many weeks

▪ FPSO “BW Pioneer” disconnected for the first time

because of a hurricane since it started operations in

2012

Note: Status as per early Oct.:

limited gas flow to plant

Onshore plants mainly suffered from the lack of utility support and

waterway access due to obstructions (transmission lines, sunken

barges and shoaling). Gas supply was rapidly available again and

not a reason for the prolonged outages

Delfin Deepwater Port – Small Scale LNG Hub

31

LNG export to nearby markets

using small-scale LNG carriers

(3,000-30,000 cbm)

LNG distribution for LNG bunkering and

other small-scale consumptions

Mexico

▪ Delfin is the owner and operator of the Delfin Deepwater Port (DWP) and therefore in full control of the operations, allowing for

supplemental small scale distribution of LNG from the FLNG Vessels

▪ The Delfin DWP will consist of 4 FLNG Vessels with a total of 13 MTPA export capacity

▪ Each vessel is fully equipped with a berth and offloading facilities (~3.5 MTPA / berth)

▪ The mooring, offloading, cargo and process systems are designed or can be amended to suit small-scale LNG carriers, with dedicated

berth facilities for small-scale compatibility

▪ Given the high berth availability, benign metocean conditions and heading control capabilities each FLNGV can provide an efficient LNG

supply hub for small scale vessels

▪ A total of 200,000 – 400,000 MTPA of small-scale supply can well be incorporated in the production planning and ADP per FLNG Vessel

NOTE: For coastal redistribution or US bunker services Jones’ Act compliant vessels are expected to load from the FLNGV


Delfin LNG Project

1

2

3



Outlook5

Table of contents

32

A new wave of LNG sales has started

33Source: Shell, Bloomberg, Rystad

Notes: (1) vertical axis shows JKM minus 115%HH illustrating the margin for liquefaction and shipping

>25 MTPA

FID

<5 MTPA FID

-5

0

5

10

15

20

25

30

35

US

D /

mm

btu

<10 MTPA FID

First ‘wave’

>60 MTPA FID Next wave▪ COVID has caused unprecedented disruptions in the LNG market

▪ A decrease in demand while the 2017-2020 supply ramp-up was being

completed led to historically low LNG pricing

▪ The market has improved and spot prices are now at their highest

level (ever)

▪ Historically (from 2000-2019) LNG has grown by 6-7% annually, with

analysts estimating a demand of around 700 MTPA by 2040

▪ Even using conservative growth rates the market will need over 150

MTPA of FIDs this decade

▪ Significant opportunities for demand to expand above conservative

forecast or even historic growth rates

o Growing use of small-scale LNG (e.g. transportation sector,

marine fuel)

o China commitment to peak carbon by 2030 and net zero by 2060

will require a major phase-out of coal

o India targeting gas to increase from 6% to 25% of Total Primary

Energy Demand

o Gas/LNG are vital for Energy Transition and “companions” to

Renewables for swing supply, backup and as a long distance

energy carrier

o With a strong focus on costs and commercial flexibility US LNG

will play an important future role and grow substantially

Market status and outlook Market supports next ‘US LNG Wave’(1)

The US LNG industry has entered into a new wave of

sanctioning for LNG export projects, supported by

(A)a robust long-term demand,

(B) a need for reliable, low-risk supply and

(C)enhanced commercial flexibility

34

LNG accounting for 3% of global energy demand China - % of global demand

Future demand is not an issue for the LNG market

▪ LNG’s role as swing supply in the global energy market allows it to compete against oil, gas and coal for demand

▪ LNG is currently a very small part of the global energy mix– A small amount of substitution to LNG from oil or

coal creates a very large change in LNG demand

▪ Economic development of China has fundamentally reshaped almost every commodity market

▪ China burns ~50% of the world’s coal but only ~8% of the world’s natural gas

▪ The “dash-for-gas” that typically occurs in wealthy countries is only beginning in China

▪ LNG is still relatively small (8-9% compared to world oil demand): 1% of oil demand switching to LNG increases LNG demand by 12%

▪ 50% of Chinese Coal is used by industry, residential and commercial: “If half of this switches to LNG, the World LNG doubles in size”

▪ The world wide merchant fleet comprises of >50,000 ships: “If 10% uses LNG as fuel (at 25tpd) LNG demand increases by 12%”

▪ LNG in early stages of growth potential

Source: Arctic Securities, BP, Bloomberg

3.0%

0%

5%

10%

15%

20%

25%

30%

35%

Oil Coal Natural gas

ex. LNG

Hydro Renewables

(ex hydro)

Nuclear LNG

Share

of glo

bal energ

y d

em

and

8%

0%

10%

20%

30%

40%

50%

60%

70%

Cement Nickel Aluminium Coal Copper Steel Oil Naturalgas

LNG in early stages of growth potential

Meeting a growing demand for clean air and affordable energy . . . . .

More than 50% of

world’s population lives

in areas with air quality

considered a high

health risk

LNG may remain a cost-efficient long-

distance energy carrier even in future

energy scenarios with LNG as

feedstock for other non-carbon fuels

combined with CCS

35

LNG will play a critical role in the energy transition, reducing carbon intensity & improving air

quality

− Facilitates coal-to-gas switching, reducing carbon emissions by up to 50%

− Supports growth of renewables such as wind/sun through grid reliability and seasonal storage

− Potential to replace heavy transportation fuel (LNG-powered vessels and trucks)

The worlds fastest growing, most population dense countries have the worst air quality

− LNG reduces GHGs but also rapidly improves air quality

− Air quality benefits are immediately creating public support for sustaining the Energy Transition

LNG/gas provides low cost, low carbon, reliable energy to significantly improve air quality Extreme Risk High Risk Medium Risk Low Risk

Air quality index

The application of an e-FLNG can

reduce GHG emissions by ~75%

. . . . . while improving the overall environmental footprint

▪ Re-purposing of facilities and utilizing existing construction sites

▪ ESG strategy, implementation and performance criteria

▪ Development of future low-carbon and carbon neutral technologies

▪ Supporting the role of LNG as a “long distance energy carrier”

LNG in the energy transition

LNG

Storage 1.0

Ammonia

Storage 1.7x

LH2

Storage 2.5x

Storage requirements for equal transported energy

36

Permits & Licenses

▪ Owner of the 42” UTOS offshore pipeline and access agreement for 42” HIOS pipeline

▪ Precedent agreements and commercial terms negotiated for gas transport capacity to St.44

▪ Ample capacity in US Gulf Coast to access liquid points in Louisiana region

▪ Fully permitted facility including Non-FTA export permit for up to 13 MTPA

▪ Newbuild FLNGV designed in full compliance with existing permitting

▪ Newbuild FLNG FEED completed in Q3 2020 with Samsung and Black & Veatch

▪ LSTK EPCIC term sheet developed with Samsung and Black & Veatch

▪ Conversion FLNG FEED completed for Chinese/Singapore shipyard cooperation

▪ Mandated Citigroup as mandated financial structuring bank for effecting debt financing

▪ Exploring ECA/vendor/yard financing schemes

▪ First offtake contract expected to be executed in the coming weeks

▪ Detailed offtake discussions with multiple buyers (IOC, portfolio, Traders, Utilities, Producers)

▪ Increasing Asian interest from consumers in the power and small-scale LNG business

▪ Strong interest for the commercial flexibility from Delfin being “smaller at lower cost”

▪ Total all-in CAPEX around 550 $/tpa on the basis of a full LSTK EPCIC wrap

▪ Significant interest in project level equity from Mezzanine and Preferred Equity providers (infrastructure

type of funding)

FEED & EPC

Pipeline Access

Debt Financing

Project Equity Financing

Offtake

Success Factors Progress achieved

Clear path to the first FID and beyond

Key elements in place to secure first FID and further expansion

✓

✓

✓

✓

✓

✓

Delfin Outlook

37

▪ Near-term execution of long term LNG sales agreements

▪ Development of integrated models with US Producers

▪ Execution of gas supply & transportation agreements

▪ FID on first FLNG Vessel in 2022

▪ Commercialization of FLNG Vessel #2

▪ Development of enhanced ESG performance measures

▪ Supporting additional North American FLNG export projects

Our Next Milestones and Growth Ambitions

Delivering low-cost, commercially flexible LNG while continuously minimizing

the environmental footprint

delfin midstream

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