Excelerate Energy, Inc. has signed a definitive agreement with a subsidiary of Iraq’s Ministry of Electricity. As a result, the deal will establish the country’s first floating liquefied natural gas (LNG) import terminal at the Port of Khor Al Zubair.
The signing ceremony took place at the Office of the Prime Minister in Baghdad. During the event, attendees included Excelerate’s CEO Steven Kobos, U.S. Deputy Secretary of Energy James Danly, U.S. Embassy Chargé d’Affaires Joshua Harris, Iraq’s Prime Minister Mohammed Shia’ al-Sudani, and Minister of Electricity Ziyad Ali Fadhil.
Steven Kobos said the agreement shows Excelerate’s commitment to Iraq’s energy future and regional stability. He explained that by combining terminal development, LNG supply, and operational expertise, the company will help Iraq secure reliable energy. Additionally, it will diversify the fuel mix and strengthen long-term energy security.
Furthermore, the integrated project includes a five-year contract for regasification services and LNG supply. It comes with extension options and a minimum contracted offtake of 250 million standard cubic feet per day. Excelerate will construct the terminal to support a guaranteed 500 MMscf/d of regasification capacity using its newest floating storage and regasification unit (FSRU), Hull 3407.
Moreover, Excelerate will provide LNG supply to the terminal. Commercial operations are expected to begin in 2026, pending final permits and construction timelines. Therefore, the project will play a key role in meeting Iraq’s future energy needs. The total project investment is approximately $450 million, including the cost of the FSRU.
Hull 3407, which is under construction by HD Hyundai Heavy Industries in South Korea, has a storage capacity of 170,000 cubic meters and a regasification capacity of up to 1 billion standard cubic feet per day. Its advanced design ensures high efficiency. In addition, Hull 3407’s flexible deployment suits Iraq’s urgent energy requirements and operational environment.
As a result, this floating LNG terminal allows Iraq to access global LNG markets for the first time. Consequently, the country can reduce reliance on imported pipeline gas. In addition, it will enhance energy security and support growing electricity demand across major cities.
The project has strong backing from both Iraqi and U.S. government stakeholders. Likewise, it represents a combination of commercial cooperation and strategic energy planning. Altogether, this partnership will strengthen Iraq’s long-term energy resilience and promote regional stability.
Finally, Excelerate Energy, based in The Woodlands, Texas, provides integrated LNG services worldwide. Its operations include terminal development, LNG supply, and power generation. The company also has a presence in Abu Dhabi, Antwerp, Boston, Doha, Dubai, and other international markets, reaffirming its global reach.
