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Excelerate announced on Tuesday that the definitive agreement was signed at the Office of the Prime Minister in a ceremony attended by Excelerate’s president and CEO Steven Kobos.
This agreement follows a recent award letter Exclerate received from the government of Iraq.
According to Excelerate, the integrated project includes a five-year agreement for regasification services and LNG supply with extension options, and a minimum contracted offtake of 250 million standard cubic feet per day (MMscf/d).
Under the agreement, Excelerate will construct the floating LNG import terminal, which is designed to accommodate a guaranteed 500 MMscf/d of regasification capacity.
Moreover, the company will deploy Hull 3407, its newest FSRU, and will be responsible for delivering the topside equipment and berth modifications to enable FSRU operations at the jetty.
Excelerate’s newest FSRU 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 (1,000 MMscf/d).
$450 million, LNG supplier
Exclerate said the total project investment is expected to be approximately $450 million, inclusive of the cost of the FSRU.
The US firm will pay about $332 million for the construction of the vessel.
As part of the integrated arrangement, Excelerate will also serve as the LNG supplier to the terminal.
However, the firm did not provide further information regarding the LNG supplies.
Commercial operations are expected to commence in 2026, but this remains subject to final permitting and construction timelines, and other closing conditions, Excelerate 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 said.
“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,” Kobos added.
