Under the auspices of Prime Minister Mohammed Shia al-Sudani, Iraq signs a deal with US-based Excelerate Energy to build a floating natural gas platform. The agreement marks a significant step in Iraq’s efforts to develop its energy infrastructure and boost gas import and storage capabilities.
According to a statement from the Prime Minister’s Office, the project will introduce Iraq’s first floating storage regasification unit. Officials told Reuters that the Texas-based company will provide a unit capable of receiving, storing, and regasifying liquefied natural gas.
The liquefied natural gas terminal will be constructed at Khor al-Zubair port in southern Iraq on the Arabian Gulf. Pipelines from the terminal will deliver the gas to power plants across the country. The initiative aims to secure stable energy supplies and reduce reliance on delayed imports.
Additionally, Baghdad has faced pressure from Washington to diversify its energy sources and reduce dependence on Iran. US sanctions and payment challenges have frequently delayed Iran’s gas supplies to Iraq, Reuters reported.
Last week, al-Sudani confirmed plans to sign an agreement with Excelerate Energy to secure natural gas for Iraq.
Despite being a major oil producer, Iraq has historically flared large amounts of associated gas rather than collecting it. The country has long relied on Iran for natural gas. During peak summer months, as Iraq signs the agreement will routinely experiences electricity outages because of Iran’s unpredictable and insufficient power supply.
To meet growing demand, Iraq is seeking gas supplies from countries other than Iran while also working toward self-sufficiency. Analysts say the floating platform deal could help stabilize Iraq’s power generation and reduce energy shortages.
The project reflects Iraq’s broader push to modernize its energy sector, attract international investment, and strengthen energy security. With growing electricity needs, the floating gas platform could play a crucial role in sustaining Iraq’s economic growth and improving public services.