2025-10-28T12:23:53+00:00
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Shafaq News – Baghdad
Iraq has signed an
agreement with US-based Excelerate Energy to build the country’s first floating
terminal for liquefied natural gas (LNG) at the Port of Khor al-Zubair in
Basra, a project both sides described as a key step in Iraq’s energy
diversification plans.
The deal, signed at
the Office of Prime Minister Mohammed Shia al-Sudani on Tuesday, covers the
construction and operation of a floating storage and regasification unit (FSRU)
with a daily capacity of 15 million cubic meters of gas. The unit will supply
fuel to Iraq’s power stations through the national grid.
Iraqi energy
officials said the terminal will receive, store, and regasify imported LNG to
help stabilize the country’s electricity network, which has suffered from
repeated disruptions caused by reduced Iranian gas imports due to sanctions and
payment issues.
Excelerate Energy
said the integrated project includes a five-year contract for LNG supply and
regasification services valued at about $450 million, with an option to extend.
The terminal will initially handle 250 million standard cubic feet per day
(MMscf/d) of gas, expandable to 500 MMscf/d.
The company will
deploy its newest regasification vessel, Hull 3407, now under construction by
HD Hyundai Heavy Industries in South Korea. The vessel, among the largest of
its kind, will have a storage capacity of 170,000 cubic meters and a
regasification capacity of up to 1 billion cubic feet per day.
Operations are
expected to begin in 2026 after construction and regulatory approvals are
completed. Al-Sudani’s office said the floating terminal offers a “flexible
option” with faster implementation and lower costs than fixed infrastructure,
aiming to secure gas supplies for electricity generation and reduce reliance on
imported pipeline gas.
The Prime Minister,
who oversaw the signing ceremony, stressed that Iraq seeks to “consolidate
political and economic stability through large-scale projects,” adding that
energy remains a top government priority.
He noted that Iraq
has set a timeline to achieve self-sufficiency in gasoline and gas production
by 2028 and emphasized the importance of US partnerships to train Iraqi
personnel and modernize the energy sector.
“This cooperation
strengthens friendship based on shared interests in various fields,” al-Sudani
pointed out during a meeting with US Deputy Secretary of Energy James Danly and
Chargé d’Affaires Joshua Harris.
Danly considered the
project reflects “notable progress in US–Iraqi cooperation,” especially in
energy development. He added that Washington aims to support Iraq’s long-term
energy independence and help it eventually export surplus power.
Excelerate Energy’s
President and CEO Steven Kobos said the deal shows the company’s “strong
commitment” to Iraq’s energy future and regional stability, describing it as
the firm’s first fully integrated LNG terminal project in the Middle East.
“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,” Kobos explained.
Developed in
coordination with Iraq’s Ministry of Electricity, the project marks Iraq’s
entry into global LNG markets. Once operational, the Khor al-Zubair terminal
will feed gas directly into the national grid, supporting power plants across
southern provinces and potentially enabling regional exports.
