Excelerate Energy Signs $450 Million Deal To Build Iraq’s First LNG Import Terminal

• Excelerate Energy signs $450 million deal to build LNG terminal in Iraq
• It will be the country’s first floating storage and regasification unit (FSRU). 
• Terminal to help reduce dependence on Iranian gas

Excelerate Energy, Inc. (EE) has signed a $450 million deal with Iraq’s Ministry of Electricity to develop the country’s first floating storage and regasification unit (FSRU) at the Port of Khor Al Zubair.

The facility will be capable of receiving, storing, and regasifying liquefied natural gas (LNG), with the gas to be integrated into Iraq’s power grid to help meet rising electricity demand, according to a press release on October 28.

“Strategically, this project extends the reach of Excelerate’s global infrastructure platform deeper into the Middle East and represents our first fully integrated floating LNG import terminal with supply in the region,” said Steven Kobos, President and CEO of Excelerate Energy. 

Deal Details

Under the five-year agreement, Excelerate will build and operate a floating LNG import terminal capable of handling 500 million standard cubic feet per day (MMscf/d) of regasification, with a minimum contracted offtake of 250 MMscf/d.

The company will deploy Hull 3407, its newest floating storage and regasification unit (FSRU), currently under construction by HD Hyundai Heavy Industries in South Korea.

The deal comes as Iraq faces pressure from the US to reduce dependence on Iranian gas, which has been subject to frequent disruptions due to sanctions and payment disputes.

How Did Stocktwits Users React?

Retail investors were buoyant. Sentiment on Stocktwits flipped to ‘bullish’ from ‘bearish’ a session earlier.

One user pegged EE as one of their LNG plays for long-term growth.

The stock was up 0.5% in early trade on Tuesday.

EE shares have declined more than 17% so far this year.

Get updates to this developing story directly on Stocktwits.