Iraq Seals Floating Gas Deal with Excelerate Energy

Iraq has strengthened its strategic energy cooperation with the United States by signing a landmark agreement with Excelerate Energy to install the country’s first Floating Storage and Regasification Unit (FSRU). The deal supports Baghdad’s plan to secure reliable gas supplies, ease pressure on the national electricity grid, and accelerate the transition towards energy self-sufficiency by 2028.

Prime Minister Mohammed S. Al-Sudani hosted the signing ceremony in Baghdad, alongside US Deputy Secretary of Energy James Danly and US Chargé d’Affaires Joshua Harris. The Prime Minister said the project reflects the government’s targeted approach to improving energy performance, supported by international partnerships that deliver technology, expertise, and long-term economic benefit.

Valued at around US$450 million, the deal will enable Excelerate Energy to provide a floating terminal capable of receiving imported liquefied natural gas, converting it into gas on board, and feeding it directly into Iraq’s power grid. The platform will operate with a minimum capacity of 250 million cubic feet per day, allowing flexible delivery aligned with actual demand, and relieving pressure on existing infrastructure during peak loads.

Al-Sudani reaffirmed that the government has already achieved nationwide self-sufficiency in high-octane gasoline and is accelerating projects that will allow Iraq not only to meet domestic needs but eventually export surplus refined products. Diversifying energy sources, he noted, is essential for ensuring grid stability, reducing financial burdens linked to fuel imports, and supporting a more modern and resilient national economy.

Mr Danly praised the ongoing progress in Iraq’s energy sector, emphasising that the United States sees growing investment and technology cooperation as key pillars in strengthening the long-standing partnership between both nations. He added that training Iraqi engineers and advancing the country’s technical capacity will be central outcomes of the agreement.

The new floating gas terminal marks a tangible advancement in Iraq-US cooperation and a critical milestone in Iraq’s strategy to deliver reliable, year round power to its citizens while positioning itself as an energy leader in the region.