October 29, 2025 [Offshore Technology]- Excelerate Energy has signed a definitive commercial agreement for a fully integrated liquefied natural gas (LNG) import terminal at the Port of Khor Al Zubair in Iraq.

The agreement was signed with a subsidiary of Iraq’s Ministry of Electricity at the Office of the Prime Minister.

The project involves a five-year contract that includes regasification services and LNG supply, with options for extension.

It guarantees a minimum of 250 million standard cubic feet per day (mscf/d) of offtake and accommodates a regasification capacity of 500mscf/d.

Excelerate will deploy its floating storage and regasification unit (FSRU), Hull 3407, to the site, handling necessary equipment and berth modifications.

This project is expected to entail a total investment of around $450m, including the cost of the FSRU.

Excelerate Energy president and CEO Steven Kobos said: “The landmark agreement we reached today with the Ministry of Electricity demonstrates Excelerate’s strong commitment to Iraq’s energy future and regional stability.

“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.”

Excelerate will also serve as the LNG supplier for the terminal, with operations expected to begin in 2026, contingent on final approvals and construction schedules.

Hull 3407, under construction by HD Hyundai Heavy Industries in South Korea, will offer a storage capacity of 170,000m³ and a regasification capacity of up to one billion standard cubic feet per day.

This development is said to be a significant advancement for Iraq, facilitating access to global LNG markets and aiming to reduce dependency on imported pipeline gas.

Excelerate said the floating LNG import terminal marks a historic milestone for Iraq, allowing the country to access global LNG markets for the first time.

Kobos added: “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.

“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.”

Earlier this year, Excelerate agreed to acquire New Fortress Energy’s downstream LNG and power infrastructure business in Jamaica for $1.06bn in cash.