Excelerate Energy Signs $450 Million Deal for Iraq’s First FLNG Import Terminal
Excelerate Energy signed a $450 million agreement with Iraq’s Ministry of Electricity to develop the nation’s first floating LNG import terminal at Khor Al Zubair. The fully integrated project includes LNG supply, regasification services, and deployment of Excelerate’s new Hull 3407 FSRU, with operations expected in 2026.
(P&GJ) - Excelerate Energy Inc. has signed a definitive $450 million agreement with Iraq’s Ministry of Electricity to develop the country’s first liquefied natural gas (LNG) import terminal at the Port of Khor Al Zubair, marking a major milestone in Iraq’s energy diversification strategy and regional LNG infrastructure growth.
The deal, signed at the Office of the Prime Minister in Baghdad, establishes a fully integrated floating LNG import project, combining terminal development, LNG supply, and regasification operations under a single framework. The agreement includes a five-year contract for LNG supply and regasification services, with extension options and a minimum contracted offtake of 250 million standard cubic feet per day (MMscf/d).
Excelerate will construct and operate the floating storage and regasification unit (FSRU) terminal, designed for 500 MMscf/d of regasification capacity. The company will deploy its newest FSRU, Hull 3407, currently being built by HD Hyundai Heavy Industries in South Korea for delivery in 2026. The vessel will have a storage capacity of 170,000 cubic meters and a send-out capability of up to 1 Bcf/d, supported by advanced boil-off gas management technology for high efficiency.
“This landmark project extends Excelerate’s infrastructure platform deeper into the Middle East and strengthens Iraq’s long-term energy security,” said Steven Kobos, Excelerate Energy President and CEO.
Once complete, the terminal will enable Iraq to import LNG directly, reducing its dependence on regional pipeline gas and addressing its growing power generation needs. The project is expected to begin commercial operations in 2026, subject to final permitting and construction timelines.
The agreement received support from both Iraqi and U.S. government representatives, including Iraq’s Prime Minister Mohammed Shia’ al-Sudani, Minister of Electricity Ziyad Ali Fadhil, and U.S. Deputy Secretary of Energy James Danly, underscoring its geopolitical and energy-security importance.