U.S.-based LNG company Excelerate Energy signed a $450m 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, the company said in its statement.   

The deal, signed at the office of the prime minister, establishes a fully integrated floating LNG import terminal in Iraq.

The agreement includes a five-year contract for LNG supply and regasification services with extension options, and a minimum contracted offtake of 250 million standard cubic feet per day (MMscf/d).

Excelerate will construct the floating LNG import terminal, designed for 500 MMscf/d of regasification capacity.

The company will deploy its newest floating storage and regasification unit (FSRU), Hull 3407, and will be responsible for delivering the topside equipment and berth modifications to enable FSRU operations at the jetty.

The 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 billion standard cubic feet per day.

As part of the integrated arrangement, Excelerate will serve as the LNG supplier to the terminal.

The project is expected to begin commercial operations in 2026, subject to final permitting and construction timelines, and other closing conditions.

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