Copyright offshore-energy
Excelerate Energy, a U.S.-based liquefied natural gas (LNG) company in Texas, has struck a new deal for the construction of a fully integrated floating LNG (FLNG) import terminal in Iraq. Following an award letter from the Iraqi government, Excelerate Energy has signed a definitive commercial agreement with a subsidiary of the country’s Ministry of Electricity for the development of the first LNG import terminal at the Port of Khor Al Zubair. This deal was inked at the Office of the Prime Minister in a ceremony attended by Steven Kobos, Excelerate’s President and CEO; James Danly, U.S. Deputy Secretary of Energy; Joshua Harris, Chargé d’Affaires of the U.S. Embassy in Baghdad; Mohammed Shia’ al-Sudani, Iraq’s Prime Minister; and Ziyad Ali Fadhil, Minister of Electricity. Steven Kobos, President and CEO of Excelerate Energy, commented: “The landmark agreement we reached today with the Ministry of Electricity demonstrates Excelerate’s strong commitment to Iraq’s energy future and regional stability. By combining terminal development, LNG supply, and operational expertise, we are helping Iraq secure reliable energy, diversify its fuel mix, and strengthen its long-term energy security.” According to the U.S.-based player, the integrated project entails a five-year agreement for regasification services and LNG supply with extension options, and a minimum contracted offtake of 250 million standard cubic feet per day (MMscf/d). Thanks to this job, Excelerate will construct the floating LNG import terminal designed to accommodate a guaranteed 500 MMscf/d of regasification capacity. The firm, which will deploy Hull 3407, its newest floating storage and regasification unit (FSRU), will be responsible for delivering the topside equipment and berth modifications to enable FSRU operations at the jetty. The total project investment is expected to be approximately $450 million, inclusive of the cost of the FSRU. Kobos added: “Strategically, this project extends the reach of Excelerate’s global infrastructure platform deeper into the Middle East and represents our first fully integrated floating LNG import terminal with supply in the region. “By executing a single agreement that encompasses both terminal development and LNG supply, we are responding to the growing global demand for regasification infrastructure and reinforcing Excelerate’s position as a leading provider of integrated LNG solutions.” Moreover, Excelerate will serve as the LNG supplier to the terminal once commercial operations start, which is anticipated to begin in 2026, subject to final permitting and construction timelines, and other closing conditions. Hull 3407 is currently under construction with HD Hyundai Heavy Industries in South Korea and is on track for delivery in 2026. With a storage capacity of 170,000 cubic meters and a regasification capacity of up to 1 billion standard cubic feet per day (1,000 MMscf/d), this unit features boil-off gas management, ensuring operational efficiency and reliability. Hull 3407 is said to have advanced design and flexible deployment capabilities, making it ideally suited to meet Iraq’s large-scale and urgent energy needs. Excelerate underscored: “The floating LNG import terminal marks a historic milestone for Iraq, enabling the country to access global LNG markets for the first time. By diversifying its fuel supply, Iraq is expected to reduce reliance on imported pipeline gas, enhance energy security, and support its rapidly growing electricity demand. “The project has been developed in close collaboration with the Iraqi government and enjoys strong support from both Iraqi and U.S. government stakeholders. It represents not only a commercial partnership but also a strategic step toward enhancing Iraq’s long-term energy security.”
