Iraq Signs $450 Million Deal with Excelerate to Build First LNG Regasification Unit

 Iraq Signs $450 Million Deal with Excelerate to Build First LNG Regasification Unit

Iraq has entered a $450 million investment agreement with US-based Excelerate Energy to construct the country’s first floating storage and regasification unit (FSRU) at the port of Khor al-Zubair, officials confirmed to Reuters.

The new facility will enable Iraq to import, store, and regasify liquefied natural gas (LNG), integrating it into the national power grid to enhance the country’s energy security. The total project investment includes Excelerate’s latest FSRU vessel, currently under construction in South Korea, with a regasification capacity of up to 500 million standard cubic feet per day (mmscf/d).

Under the five-year agreement, with extension options, Excelerate will supply LNG and provide regasification services, with a minimum contracted offtake of 250 mmscf/d.

This agreement supports Iraq’s strategy to diversify energy sources and attract more US investment, reducing reliance on Iranian gas imports, which have been subject to disruptions due to sanctions and payment issues.

Recently, Iraq has strengthened energy cooperation with US companies, including ExxonMobil, Chevron, Baker Hughes, and Honeywell, through projects spanning oil field development, gas capture, and power generation. This deal with Excelerate aligns with Iraq’s broader plan to modernize its energy infrastructure and ensure reliable gas supply for the future.