Excelerate Energy to Develop Iraq’s First LNG Import Terminal
U.S.-based Excelerate Energy will finance and operate Iraq’s first liquefied natural gas import terminal, marking a strategic expansion of American energy influence in a region historically contested by Chinese and Iranian interests.
Excelerate Energy will develop, finance, and operate Iraq’s first liquefied natural gas import terminal, with operations slated to begin in the second quarter of 2027. The U.S. firm signed an agreement with Iraq’s Ministry of Electricity, starting with a $450 million budget that sources indicate is merely an initial figure.
The project will be located at the Port of Khor Al Zubair. Excelerate will act as the sole commercial developer, managing all engineering, procurement, dredging, and site clearance. The company will also serve as the primary LNG cargo supplier, bundling infrastructure development and fuel delivery into a single contract.
The facility is designed for a guaranteed regasification capacity of 500 million standard cubic feet per day. Under the agreement, Iraq has committed to a minimum daily intake of 250 million standard cubic feet.
This investment represents a strategic push by Washington to expand U.S. energy influence in a region historically dominated by Iranian and Chinese interests. With over 90 percent of Iraq’s government revenues derived from hydrocarbons, establishing a U.S.-backed LNG hub offers a mechanism to dilute Beijing and Tehran’s economic leverage.
The development aligns with America’s position as the world’s leading LNG exporter, currently processing approximately 18 billion cubic feet per day of natural gas into LNG. The Energy Information Administration projects U.S. export capacity will double by 2031 compared with 2024 levels, positioning American supply to fill global gaps amid extended repair timelines at competing facilities like Qatar’s North Dome.
Highlighting the strategic calculus, a very senior energy security source at the European Commission noted the leverage that energy dominance provides. “There’s an old phrase: ‘If you’ve got them by the balls, their hearts and minds will follow,’ and Trump knows that controlling energy is the way to do this,” the source stated. “You saw it when he told the Europeans -- when the Strait of Hormuz was closed -- that they should just get their energy from the U.S. That’s what this is.”
