Iraq Starts Dredging Work on First LNG Import Terminal

Excelerate Energy has started dredging work on Iraq's first floating storage and regasification unit (FSRU) for LNG import terminal at the Port of Khor Al Zubair, about 50 km south of Basra. The project is worth $450 million and will supply a minimum of 250 mn standard cubic feet (7.1 mn cubic metres) per day to Iraq.

The FSRU is currently under construction in South Korea and will be deployed at the Port of Khor Al Zubair. Excelerate inked a five-year deal with a subsidiary of Iraq's Ministry of Electricity in October 2025 for LNG supply and regasification services, which includes an extension option.

The terminal aims to help Baghdad diversify its energy supply and reduce dependence on gas imports from Iran, particularly since US sanctions have disrupted the flow of supply. The FSRU will boast a regasification capacity of 500 mn standard cubic feet (14.2 mn cubic metres) per day.