Floating LNG terminal development will enable Iraq to access global LNG markets for the first time. Consequently, the project strengthens energy security and meets the country’s growing electricity demand.
Excelerate Energy, a US liquefied natural gas company, confirmed that its newest floating storage and regasification unit (FSRU), Hull 3407, is under construction at HD Hyundai Heavy Industries in South Korea. Moreover, the company plans to deliver it in 2026 and deploy it at Iraq’s Port of Khor Al Zubair.
In addition, Excelerate signed a definitive commercial agreement with a subsidiary of Iraq’s Ministry of Electricity for the nation’s first LNG import terminal. The terminal will provide 1 billion cubic feet per day of regasification capacity and 170,000 cubic meters of storage. Furthermore, Hull 3407 features advanced boil-off gas management, which ensures operational efficiency and reliability. Excelerate added that the FSRU’s flexible design suits Iraq’s urgent energy needs.
The project also includes a five-year agreement for LNG supply and regasification services, with extension options. Excelerate will install topside equipment and modify the berth to enable full FSRU operations. Overall, the total project investment is expected to reach $450 million, including the FSRU.
Steven Kobos, CEO of Excelerate, said, “The landmark agreement demonstrates our commitment to Iraq’s energy future and regional stability.” He added, “By combining terminal development, LNG supply, and operational expertise, we help Iraq secure reliable energy, diversify fuel sources, and strengthen long-term security.”
In addition, Kobos highlighted that the project expands Excelerate’s global infrastructure platform in the Middle East. By executing a single agreement for both terminal development and LNG supply, the company can meet the growing global demand for regasification infrastructure.
Excelerate will begin commercial operations at the floating LNG terminal in 2026, subject to permits and construction schedules. As a result, the terminal will reduce Iraq’s dependence on imported pipeline gas, diversify fuel supply, and enhance energy security.
The company developed the project closely with the Iraqi government and enjoys strong support from Iraqi and US stakeholders. Therefore, Excelerate described the initiative as both a commercial venture and a strategic step toward Iraq’s long-term energy security.
