Iraq is set to sign a deal with US-based Excelerate Energy to secure natural gas for the country. Prime Minister Mohammed Shia al-Sudani confirmed the plan during an interview but did not provide details on delivery terms, volume, or schedule.
Therefore, the agreement aims to reduce Iraq’s heavy reliance on Iranian gas, which has often been insufficient and unpredictable. For years, Iraq has faced frequent electricity outages, especially during the summer, due to shortages in gas and power supply from Iran.
The acting director of Iraq’s South Gas Company (SGC), Ali Salman, said earlier that the government is in advanced talks with Excelerate Energy to establish an LNG import terminal at Khor al-Zubair port near Basra. This terminal will allow Iraq to import liquefied natural gas and ensure a more stable energy supply.
Iraq produces substantial amounts of associated gas from its oil fields, but the country has flared much of it instead of collecting it. Officials have emphasized the need to capture this gas and integrate it into the national energy system to meet growing electricity demand.
In February, SGC director Hamza Abdel-Baqi announced plans to award a contract for constructing a gas platform and pipelines. These pipelines will connect the facility to onshore infrastructure, enabling gas deliveries to power plants in southern Iraq.
The Iraqi government continues to explore options to diversify its gas supply sources. Beyond importing LNG from the US, authorities aim to increase domestic gas production and achieve partial self-sufficiency. These efforts are critical to supporting Iraq’s electricity sector and reducing reliance on foreign imports.
Analysts say the Excelerate Energy deal could improve Iraq’s energy stability, reduce outages, and support economic growth. Reliable gas supplies are key to powering industries, homes, and essential services across the country.