Iraq taps US firm for FLNG import terminal development

October 2, 2025, by Dragana Nikše

The Iraqi government has issued an award letter to U.S.-based Excelerate Energy to develop the country’s integrated floating liquefied natural gas (FLNG) import terminal.

The U.S. player, which is poised to lead the terminal’s development in coordination with the Iraqi government, believes this represents a landmark opportunity to enhance Iraq’s energy security and infrastructure.

The proposed terminal is expected to facilitate the import of LNG to support domestic power generation, help stabilize the national grid, and allow Iraq to diversify from what Excelerate says are unreliable natural gas supply sources.

“This award is a testament to the strategic partnership between Excelerate Energy and the Government of Iraq,” said Steven Kobos, President and CEO of Excelerate Energy. “We are honored to be selected for this critical infrastructure project and look forward to working closely with Iraqi leadership to bring it to fruition.”

After Iraq’s Prime Minister Mohammed Shia’ al-Sudani approved the project in Baghdad, Iraq’s Deputy Prime Minister and Foreign Minister Fuad Hussein congratulated Excelerate President and CEO Steven Kobos at a meeting taking place on the margins of the 80th United Nations General Assembly in New York City.

The meeting was also attended by U.S. Department of State’s Thomas Lersten, Senior Official to the Office of the Under Secretary for Economic Growth, Energy, and the Environment, who underscored the strategic importance of U.S. LNG to the administration’s energy dominance agenda.

“This terminal opportunity demonstrates U.S. energy leadership and represents a vital step in advancing Iraq’s energy security and reducing its reliance on Iranian pipeline gas. The United States is proud to advocate for our companies, and Excelerate Energy’s involvement will bring U.S. private sector innovation to Iraq and contribute to regional stability while supporting American jobs,” noted Lestern.

While this is a preliminary step, and binding commercial agreements are needed for the project to move forward, Excelerate is convinced that its discussions with Iraqi authorities will have a positive outcome, allowing it to finalize the necessary contracts and ensure the implementation of this energy infrastructure.

In addition to this FLNG project, the U.S. player is having a floating storage regasification unit (FSRU) built at HD Hyundai Heavy Industries shipyard in South Korea. Following the keel-laying ceremony in March, when the vessel’s hull started to be assembled, the hull was launched in July.