In preparation for imports, Iraq is discussing with an American company the construction of a floating gas storage unit.
In preparation for imports, Iraq is discussing with an American company the construction of a floating gas storage unit.
2025-06-26 08:14
The American Oil Price website revealed on Thursday that Iraq is in talks with Texas-based Excelerate Energy to establish a floating gas storage unit (FSU) to assist in the gas import process. The FSU will be located at the Khor al-Zubair port in Basra .
“Texas-based Excelerate Energy is one of the bidders in a tender to provide a floating storage and regasification unit (FSRU) that would welcome Iraq’s first imports of liquefied natural gas ,” the website reported, translated by Shafaq News Agency.
The report added that “Baghdad, which is seeking to wean itself off Iranian gas supplies for power generation, is in advanced talks with Excelerate Energy regarding liquefied natural gas (LNG) import infrastructure at the Khor al-Zubair port in Basra .”
The report quoted Ali Salman, acting general manager of the South Gas Company, as saying to Bloomberg, “Experience Energy, an American company that provides floating LNG import terminals, develops LNG import infrastructure, and supplies LNG and natural gas, is one of the bidders for Iraq’s plan to begin importing LNG. South Gas Company is overseeing the development of the gas import project .”
He explained that “Iraq has long relied on Iran for imports of natural gas and electricity, and despite being a major oil producer, Iraq has historically experienced high levels of associated gas flaring rather than collecting it in the gas supply chain.” He explained that “during the summer months, during peak electricity demand, Iraq often suffers from severe power outages and frequent blackouts due to unstable and insufficient gas and energy supplies from Iran .”
Earlier this year, Iraq’s electricity supply problems worsened after the Trump administration ended the waiver granted to Iraq to import electricity from Iran. Under pressure to reduce its reliance on Iranian energy for years, Iraq began exploring alternative gas sources, including the option of importing liquefied natural gas .
At the end of last year, Iraq signed a gas supply agreement with Turkmenistan, guaranteeing it 20 million cubic meters of gas per day .
shafaq.com
