US-listed Excelerate Energy has inked an deal to deploy its single floating storage and regasification unit newbuilding to Iraq.
The company has signed a commercial agreement with the country to develop its first LNG import terminal for $450m.
Excelerate said it will deploy its 170,000-cbm newbuilding Hull 3407 — currently listed as named Excelerate Acadia and under construction at HD Hyundai Heavy Industries — for the terminal at the Port of Khor Al Zubair.
There has been considerable speculation as to where the June-2026 delivering FSRU will head to in an environment where such vessels are in high demand.
Under the agreement, which was signed the agreement with an arm of Iraq’s Ministry of Electricity in the office and presence of the country’s prime minister, Mohammed Shia’ al-Sudani, Excelerate will construct the floating import terminal and be the LNG supplier for the facility.
Excelerate said the integrated project includes a five-year agreement for regasification services and LNG supply with extension options, and a minimum contracted offtake of 250m standard cubic feet per day (MMscf/d).
The floating terminal is designed to accommodate a guaranteed 500 MMscf/d of regasification capacity. This is half the FSRU newbuilding’s 1,000 MMscf/d send-out capabilities.
Excelerate, a regasification specialist, said the FSRU newbuilding’s advanced design and flexible deployment capabilities make it ideally suited to meet Iraq’s large-scale and urgent energy needs.
Excelerate 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 $450m, inclusive of the cost of the FSRU,
Commercial operations are expected to start in 2026, subject to final permitting and construction timelines, and other closing conditions.
Excelerate president and chief executive Steven Kobos said: “By combining terminal development, LNG supply, and operational expertise, we are helping Iraq secure reliable energy, diversify its fuel mix, and strengthen its long-term energy security.”
Kobos, who also attended the signing, said the project extends 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.
Excelerate said the new terminal will allow Iraq 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 company said.