Excelerate Energy, a US-based energy company specializing in floating LNG infrastructure, has signed a $450 million agreement with a subsidiary of Iraq’s Ministry of Electricity to construct the country’s first floating liquefied natural gas (LNG) import and regasification terminal at the Port of Khor al-Zubair.
The project is part of Iraq’s efforts to diversify its energy sources and reduce reliance on Iranian gas imports. Under the five-year integrated agreement, which includes options for extension, Excelerate will supply LNG, provide regasification services, and deliver a minimum contracted offtake of 250 million standard cubic feet per day (MMscf/d).
At the center of the project is Excelerate’s new floating storage and regasification unit (FSRU), designated Hull 3407, which is currently being built by HD Hyundai Heavy Industries in South Korea. The vessel will have a storage capacity of 170,000 cubic meters and a maximum regasification rate of 1 billion standard cubic feet per day (1,000 MMscf/d). For Iraq’s terminal, the guaranteed regasification capacity will be 500 MMscf/d. The unit is equipped with boil-off gas management systems to improve operational efficiency.
Excelerate will also deliver topside equipment and berth modifications required for the FSRU’s operation at Khor al-Zubair. The total investment of $450 million includes both terminal development and the FSRU.
Commercial operations are scheduled for 2026, subject to final permitting and construction milestones. Once operational, the terminal will allow Iraq to import, store, and regasify LNG, integrating it into the national power grid and strengthening the country’s energy security.
Excelerate President and CEO Steven Kobos stated that the project brings together terminal development, LNG supply, and operational expertise to enhance Iraq’s energy reliability. He noted that it represents Excelerate’s first fully integrated floating LNG import terminal with LNG supply in the Middle East, expanding the company’s presence in the region.
The signing ceremony was attended by Iraq’s Prime Minister Mohammed Shia’ al-Sudani, Minister of Electricity Ziyad Ali Fadhil, US Deputy Secretary of Energy James Danly, and US Embassy Chargé d’Affaires Joshua Harris.
