Iraq Inks $450 Million Deal with Excelerate Energy for Floating Gas Platform
The agreement aims to attract more US investment into Iraq's energy sector and diversify its energy sources.
Iraq has officially signed a significant $450 million investment deal with Excelerate Energy, a United States-based company specializing in liquefied natural gas (LNG) solutions.
The agreement entails the establishment of Iraq's first floating storage regasification unit (FSRU), based at Khor Al-Zubair port.
This strategic move by Baghdad reflects an effort to boost US investment in its energy sector and reduce reliance on Iran for gas imports, which have been subject to disruptions due to sanctions and payment issues.
The FSRU, currently under construction in South Korea, is projected to provide up to 500 million standard cubic feet per day (MMscf/d) of regasification capacity.
Excelerate Energy will offer both regasification services and LNG supply under the terms of this five-year agreement, with a minimum contracted offtake set at 250 MMscf/d.
This project marks a pivotal development in Iraq's energy landscape as it seeks to enhance its natural gas infrastructure.
The deal has been announced by Iraq’s prime minister’s office without disclosing further details.
The arrangement represents a broader strategy to strengthen US-Iraqi energy relations and diminish Iraq's dependence on Iranian energy resources, aligning with Washington’s objectives to limit Iran's influence in the region.
By integrating LNG into its power generation system, Iraq aims to achieve greater energy security and stability.
The agreement entails the establishment of Iraq's first floating storage regasification unit (FSRU), based at Khor Al-Zubair port.
This strategic move by Baghdad reflects an effort to boost US investment in its energy sector and reduce reliance on Iran for gas imports, which have been subject to disruptions due to sanctions and payment issues.
The FSRU, currently under construction in South Korea, is projected to provide up to 500 million standard cubic feet per day (MMscf/d) of regasification capacity.
Excelerate Energy will offer both regasification services and LNG supply under the terms of this five-year agreement, with a minimum contracted offtake set at 250 MMscf/d.
This project marks a pivotal development in Iraq's energy landscape as it seeks to enhance its natural gas infrastructure.
The deal has been announced by Iraq’s prime minister’s office without disclosing further details.
The arrangement represents a broader strategy to strengthen US-Iraqi energy relations and diminish Iraq's dependence on Iranian energy resources, aligning with Washington’s objectives to limit Iran's influence in the region.
By integrating LNG into its power generation system, Iraq aims to achieve greater energy security and stability.
