Excelerate’s FSRU en route to Iraq: Opec+ member Iraq has inked a USD 450 mn definitive commercial agreement with US-based firm Excelerate Energy to develop the country’s first floating storage and regasification unit (FSRU) at Basra’s Khor Al Zubair Port, according to a statement. The agreement would see Excelerate develop the FSRU and provide the required regasification services and LNG supply for operation for a period of five years, subject to extension.

ICYMI- Baghdad first awarded the contract to Excelerate Energy in early October to develop its planned floating liquefied natural gas import terminal.

The details: Excelerate will deploy its newest FSRU, the Hull 3407, with commercial operations slated to commence in 2026 — subject to final approvals, build timelines, and remaining closing conditions. Iraq would take up a minimum amount of 250 mn scf/d of natural gas from Excelerate.

About the FSRU: Hull 3407 boasts a storage capacity of 170k cbm and a regasification capacity of up to 1 bn scf/d. The unit — currently under construction by HD Hyundai Heavy Industries in South Korea — will also include boil-off gas management, a process that ensures efficient management by capturing evaporating gas when LNG is stored and transported.

IN CONTEXT- The floating LNG terminal will allow Iraq to access global LNG markets, cap its reliance on imported pipeline gas, and strengthen Iraq’s energy security amid US pressure to cut reliance on Iranian energy imports. The project also represents a collaboration between the US and Baghdad — after the US abrogated a waiver in March to allow Iraq to import Iranian electricity, undermining Iraq’s power output, as the country depends on electricity and natural gas imports.

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