Excelerate Energy Inc. (Excelerate) has executed a definitive commercial agreement with a subsidiary of Iraq’s Ministry of Electricity for the development of the country’s first liquefied natural gas (LNG) import terminal at the Port of Khor Al Zubair.
“Strategically, this project extends the reach of Excelerate’s global infrastructure platform deeper into the Middle East and represents our first fully integrated floating LNG import terminal with supply in the region,” said Steven Kobos, president and chief executive officer of Excelerate. “By executing a single agreement that encompasses both terminal development and LNG supply, we are responding to the growing global demand for regasification infrastructure and reinforcing Excelerate’s position as a leading provider of integrated LNG solutions.”
The integrated project includes a five-year agreement for regasification services and LNG supply with extension options, and a minimum contracted offtake of 250 MMscf/d (7.07 x 106 m3/d). Under the agreement, Excelerate will construct the floating LNG import terminal, which is designed to accommodate a guaranteed 500 MMscf/d (14.1 x 106 m3/d) of regasification capacity. The company will deploy Hull 3407, its newest floating storage and regasification unit (FSRU), and will be responsible for delivering the topside equipment and berth modifications to enable FSRU operations at the jetty. The total project investment is expected to be approximately US$450 million, inclusive of the cost of the FSRU.
As part of the integrated arrangement, Excelerate will serve as the LNG supplier to the terminal. Commercial operations are expected to commence in 2026, subject to final permitting and construction timelines, and other closing conditions.
Hull 3407
Excelerate’s newest FSRU, Hull 3407, is currently under construction by HD Hyundai Heavy Industries in South Korea and is on track for delivery in 2026. The vessel is designed with a storage capacity of 170,000 cubic meters and a regasification capacity of up to 1 bcf/d (28.3 x 106 m3/d). In addition to its high send-out capability, Hull 3407 features best-in-class boil-off gas management, ensuring operational efficiency and reliability.
Strengthening Iraq’s Energy Security
The floating LNG import terminal marks a historic milestone for Iraq, enabling the country to access global LNG markets for the first time. By diversifying its fuel supply, Iraq is expected to reduce reliance on imported pipeline gas, enhance energy security, and support its rapidly growing electricity demand.
The project has been developed in close collaboration with the Iraqi government and enjoys strong support from both Iraqi and US government stakeholders. It represents not only a commercial partnership but also a strategic step toward enhancing Iraq’s long-term energy security.
