Excelerate Energy to develop integrated floating LNG import terminal in Iraq

Excelerate Energy Inc. has executed a definitive commercial agreement with a subsidiary of Iraq’s Ministry of Electricity for development of the country’s first LNG import terminal at the Port of Khor Al Zubair.

The integrated project includes a 5-year agreement for regasification services and LNG supply with extension options, and a minimum contracted offtake of 250 MMscfd, Excelerate Energy said in a release Oct. 28.

Excelerate will construct the floating LNG import terminal, which is designed to accommodate a guaranteed 500 MMscfd 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, it said.

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 cu m and a regasification capacity of up to 1 bcfd.

Including the cost of the FSRU, the total project investment is expected to be about $450 million.

Excelerate will serve as the LNG supplier to the terminal. Commercial operations are expected to begin in 2026, subject to final permitting and construction timelines, and other closing conditions.