Excelerate Energy CEO: Our agreement puts Iraq on the global gas market map for the first time
US company Excelerate Energy announced on Tuesday details of its agreement with the Iraqi government to develop the country’s first floating terminal for importing liquefied natural gas (LNG) at Khor al-Zubair Port in Basra Governorate, with an investment estimated at approximately $450 million.
The company said in a statement received by Shafaq News Agency that the agreement was signed in the office of Prime Minister Mohammed Shia al-Sudani in the presence of its CEO, Stephen Cobus, US Deputy Secretary of Energy James Danley, US Chargé d’Affaires in Baghdad Joshua Harris, Minister of Electricity Ziyad Ali Fadhil, and Acting Minister of Oil Ali Maaraj.
“The agreement represents a long-term commitment to supporting Iraq’s energy future and enhancing its regional stability,” Kobus added, noting that the project combines the development of the plant, gas supply, and operational management under a single contract, placing Iraq on the global gas market map for the first time.
The project includes a five-year gas supply and regasification contract with a guaranteed capacity of 250 million standard cubic feet per day, with the potential to expand to 500 million cubic feet per day. The company will use its newest floating storage and regasification vessel, Hull 3407, currently under construction in South Korea and one of the largest floating storage and regasification units in the world, with a capacity of up to 1 billion cubic feet per day.
The plant is scheduled to begin commercial operations in 2026, following the completion of construction and technical permits. This move is seen by Baghdad and Washington as “pivotal” to enhancing energy security and reducing reliance on pipeline gas imports.
The company explained that the project was implemented “in close cooperation with the Iraqi government,” noting that it aims to diversify fuel sources and meet the country’s growing demand for electricity, as part of a strategic partnership between Iraq and the United States to support energy infrastructure projects.
The Iraqi government announced earlier today the signing of the contract “as part of Baghdad’s efforts to attract more American investments to its energy sector.”
Iraq is under pressure from Washington to diversify its energy sources and limit its energy ties with Iran, whose gas exports to Iraq have been repeatedly disrupted by US sanctions and payment disputes.
The Prime Minister sponsored the signing ceremony of the contract for the floating unloading platform (FSRU) for gas, with a capacity of 15 million cubic meters per day, between the Ministry of Electricity and the American company Excelerate Energy, for a period of five years, renewable.
According to a statement from Al-Sudani’s office, this contract was signed to supply natural gas to power plants and support power generation by diversifying gas sources to meet the actual needs of the plants.
Shafaq.com