Iraq has taken a major step to secure its energy future by signing a contract with U.S.-based Excelerate Energy. The deal will build a floating storage and regasification unit (FSRU). The signing took place in Baghdad under Prime Minister Mohammed Shia Al-Sudani. He met with U.S. Deputy Secretary of Energy James Patrick Danly and Chargé d’Affaires Joshua Harris.
Al-Sudani stressed the importance of strong cooperation between Iraq and the U.S. across many sectors. He said government-led initiatives have already improved the energy sector nationwide. Iraq has achieved self-sufficiency in high-octane gasoline production. The country is also working to reach full gas self-sufficiency by 2028. He highlighted collaboration with U.S. energy firms to advance technical expertise, train Iraqi personnel, and implement modern oil and gas technologies.
Deputy Secretary Danly praised the progress in Iraq-U.S. energy cooperation. He said the U.S. supports partnerships that help Iraq achieve energy self-sufficiency and eventually export surplus electricity.
Following the meeting, Al-Sudani oversaw the contract signing between Iraq’s Ministry of Electricity and Excelerate Energy. The five-year renewable agreement will supply natural gas to Iraq’s power plants. The FSRU has a capacity of 15 million cubic meters per day. It is flexible and cost-effective compared to fixed infrastructure. The floating platform allows faster implementation, lower costs, and diversifies gas supply to meet growing demand.
Experts say the project strengthens Iraq’s energy security and modernizes its electricity sector. It reduces reliance on imported gas and builds technical capacity through international partnerships.
The FSRU project marks a major milestone in Iraq’s energy transformation. It shows the government’s commitment to sustainable infrastructure, energy diversification, and international collaboration. The project will ensure reliable power and support economic growth.