Delfin Midstream Inc has delayed its plan to make a final investment decision on its proposed Delfin Floating Liquefied Natural Gas (FLNG) export terminal in the Gulf of Mexico off Louisiana to 2020 from 2019.

Delfin said in a release on Tuesday it entered into new agreements for front-end design and engineering work on a newbuild FLNG vessel with units of Samsung Heavy Industries Co Ltd and Black & Veatch. The company said it was on track to complete an Engineering, Procurement and Construction (EPC) contract in mid-2020.

With the 2020 target for a final investment decision, the company said it was looking at first LNG production in mid 2024. "While the (U.S.-China) trade dispute delays a firm agreement with Chinese offtakers, we are certainly continuing our discussions and negotiations with Chinese offtakers as well as shipyards and financiers," Delfin Chief Operating Officer Wouter Pastoor said in an email.

Before the trade war heated up in mid 2018, Delfin had signed a preliminary agreement to sell gas to China Gas Holdings Co Ltd. Delfin's project seeks to use existing offshore pipelines to supply gas to up to four FLNG vessels that could produce up to 13 million tonnes per annum (MTPA) of LNG or 1.7 billion cubic feet per day (bcfd) of natural gas.

One billion cubic feet is enough gas to supply about 5 million U.S. homes for a day. The company is also developing the Avocet LNG project with slots for two additional FLNG vessels.

Delfin says its FLNG model should allow it to supply gas to customers at lower costs than onshore LNG export terminals. All big LNG export terminals operating in the United States liquefy gas at onshore facilities. The Delfin plant is one of dozens of LNG export projects under development in the United States, Canada and Mexico.

Reporting by Scott DiSavino