Iraq signs $450-MM agreement for floating natural gas platform with Excelerate Energy
Iraq has signed a $450-MM investment deal with Excelerate Energy for the U.S. company to build the Gulf country's first floating storage regasification unit, as Baghdad seeks to attract more U.S. investment to its energy sector.
The unit, capable of receiving, storing and regasifying liquefied natural gas (LNG), will be based at the port of Khor al-Zubair, with gas piped for integration into Iraq’s power grid, two Iraqi energy officials with knowledge of the agreement said.
The Iraqi prime minister's office announced the deal in a statement on Tuesday, without providing details.
Five-yr agreement. Excelerate said in a separate statement that the total investment value of the project was estimated at around $450 MM, including the cost of Excelerate's newest floating storage and regasification unit. The vessel, currently under construction in South Korea, is designed to handle up to 500 MMsft3d of regasification capacity, Excelerate said. Under the 5-yr agreement, which includes extension options, Excelerate will provide both regasification services and LNG supply, with a minimum contracted offtake of 250 MMsft3d,
Iraq is under pressure from Washington to diversify its energy sources and limit energy ties with Iran, from where gas exports to Iraq have been repeatedly disrupted due to U.S. sanctions and payment disputes.
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