In a landmark move for Iraq’s energy sector, the country has inked its inaugural agreement for a floating liquefied natural gas (LNG) import terminal with U.S.-based Excelerate Energy, Inc. This deal, valued at approximately $450 million, marks Iraq’s entry into the global LNG market and aims to bolster the nation’s energy security amid rising electricity demands.
The agreement was formalized in a ceremony attended by high-level officials from both Iraq and the U.S., including Iraq’s Prime Minister Mohammed Shia’ al-Sudani and Excelerate’s President and CEO Steven Kobos.
Details of the AgreementUnder the five-year contract, with options for extension, Excelerate Energy will develop a fully integrated floating LNG import terminal at the Port of Khor Al Zubair in southern Iraq.
The project encompasses the deployment of Excelerate’s newest floating storage and regasification unit (FSRU), Hull 3407, which is currently under construction by HD Hyundai Heavy Industries in South Korea and slated for delivery in 2026.
This FSRU boasts a storage capacity of 170,000 cubic meters and a regasification capacity of up to 1 billion standard cubic feet per day (Bscf/d), featuring advanced boil-off gas management for enhanced efficiency.
The terminal is designed to handle a guaranteed regasification capacity of 500 million standard cubic feet per day (MMscf/d), with a minimum contracted gas offtake of 250 MMscf/d.
Excelerate will also oversee the supply of LNG, topside equipment installation, and berth modifications to support operations.
Commercial operations are expected to commence in 2026, pending final permits and construction timelines.
This initiative is poised to diversify Iraq’s fuel sources, reduce dependence on imported pipeline gas, and stabilize the national power grid by supporting domestic electricity generation.
It represents Excelerate’s first fully integrated floating LNG project in the Middle East, combining terminal development and LNG supply under a single agreement.
About Excelerate EnergyExcelerate Energy, headquartered in The Woodlands, Texas, is a leading provider of flexible LNG solutions, specializing in floating storage and regasification units (FSRUs) and integrated LNG import terminals. The company operates a global fleet and has a presence in key markets across the Americas, Europe, the Middle East, and Asia. With a focus on energy security and transition, Excelerate has been instrumental in enabling countries to access LNG efficiently through innovative floating infrastructure.
Excelerate Energy’s Latest Earnings Report
Excelerate Energy’s most recent earnings release covers the second quarter of 2025, reported on August 11, 2025.
For Q2 2025, the company posted a net income of $20.8 million, down from the prior year due to transaction costs related to its acquisition of LNG assets in Jamaica, though partially offset by contributions from that deal.
Adjusted net income stood at $46.8 million, reflecting an increase year-over-year driven by the Jamaica integration.
Adjusted EBITDA for the quarter reached $107.1 million, up from the previous year, primarily attributed to the addition of EBITDA from the Jamaica assets.
Earnings per share (EPS) came in at $0.34, surpassing analyst expectations by about 17%, though revenues missed forecasts by around 16%.
The company also raised its full-year 2025 adjusted EBITDA guidance to $420 million to $440 million, incorporating the Jamaica acquisition’s contributions from mid-May onward.
Key business highlights included the completion of the Jamaica acquisition in May 2025, which expanded Excelerate’s downstream infrastructure with LNG terminals and a combined heat and power plant.
Additionally, the company announced the purchase of an LNG carrier (renamed Excelerate Shenandoah) for a mid-term Atlantic Basin supply deal and a reliquefaction unit installation agreement with Petrobras in Brazil.
Excelerate also increased its quarterly dividend by 33% to $0.08 per share, signaling confidence in future cash flows.
As of June 30, 2025, Excelerate maintained strong liquidity with $426 million in unrestricted cash and full availability of its $500 million revolving credit facility.
The third quarter 2025 earnings are scheduled for release in early November 2025.
What Investors Should Look For in the Announcement and Deal
The Iraq deal, announced just ahead of Excelerate’s upcoming Q3 2025 earnings, could be a significant catalyst for the company’s growth trajectory. Investors should monitor several key aspects:
Revenue Impact: With a $450 million project value over five years, the deal could contribute substantially to future revenues through regasification services and LNG supply. Look for updates on how this integrates into the full-year guidance, potentially boosting adjusted EBITDA beyond current projections.
Strategic Expansion: This project deepens Excelerate’s footprint in the Middle East, a region with growing LNG demand. Investors should watch for commentary on additional opportunities in the area, building on the company’s global diversification strategy, as seen with the recent Jamaica and Brazil initiatives.
Execution Risks and Timelines: Given the 2026 start date, focus on any mentions of permitting, construction progress, or geopolitical factors in Iraq that could affect timelines. Successful deployment of Hull 3407 will be crucial for operational reliability.
Financial Health and Capital Allocation: With strong liquidity, the deal’s funding (included in the $450 million investment) shouldn’t strain the balance sheet. Investors should eye updates on committed growth capital ($95M-$105M for 2025) and potential dividend hikes, as the company targets low double-digit annual growth through 2028.
Market Reaction and Valuation: Post-announcement, Excelerate’s stock may see volatility. Compare the deal’s metrics (e.g., capacity utilization) against peers in the LNG infrastructure space to assess valuation multiples.
Overall, this agreement underscores Excelerate’s expertise in floating LNG solutions and positions it for sustained growth in emerging markets. As global energy transitions accelerate, deals like this could enhance long-term shareholder value. This is yet another example of Energy Dominance through U.S. Companies Exporting Services and technical capabilities.
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