Excelerate looks to develop first FLNG terminal for Iraq

Excelerate Energy has received an official award letter from the Government of Iraq to develop an integrated floating liquefied natural gas (LNG) import terminal.

The company said the move by Iraq marked "a significant milestone in the country’s energy diversification strategy".

An award letter is a preliminary step, and development of the terminal remains subject to the successful negotiation and execution of binding commercial agreements. 

With approval from Iraqi Prime Minister Mohammed Shia’ al-Sudani, Iraq’s Deputy Prime Minister and Foreign Minister Fuad Hussein met with a senior official from the US State Department, Thomas Lersten and Excelerate President and CEO Steven Kobos in late September during a meeting on the margins of the 80^th United Nations General Assembly in New York City.

Excelerate will lead on the development of the integrated floating import terminal, in coordination with the Iraqi government.

The deal, according to Excelerate, "represents a landmark opportunity to enhance Iraq’s energy security and infrastructure".

"The proposed terminal will enable the importation of LNG to support domestic power generation, help stabilise the national grid, and allow Iraq to diversify from unreliable natural gas supply sources," Excelerate said.

Mr Lersten cited the terminal’s potential to shift Iraq away from importing Iranian natural gas.

“This terminal opportunity demonstrates US energy leadership and represents a vital step in advancing Iraq’s energy security and reducing its reliance on Iranian pipeline gas.”

Excelerate said it is "actively engaged with Iraqi authorities to finalise the necessary contracts and ensure timely implementation of this critical energy infrastructure".