Iraq signs agreement for floating natural gas platform with Excelerate Energy

BAGHDAD, Oct 28 (Reuters) - Iraq has signed a $450 million investment deal with Excelerate Energy EE.N for the U.S. company to build the Gulf country's first floating storage regasification unit, as Baghdad seeks to attract more U.S. investment to its energy sector.

The unit, capable of receiving, storing and regasifying liquefied natural gas, will be based at the port of Khor al-Zubair, with gas piped for integration into Iraq’s power grid, two Iraqi energy officials with knowledge of the agreement said.

The Iraqi prime minister's office announced the deal in a statement on Tuesday, without providing details.

FIVE-YEAR AGREEMENT

Excelerate said in a separate statement that the total investment value of the project was estimated at around $450 million, including the cost of Excelerate's newest floating storage and regasification unit.
The vessel, currently under construction in South Korea, is designed to handle up to 500 million standard cubic feet per day (MMscf/d) of regasification capacity, Excelerate said.
Under the five-year agreement, which includes extension options, Excelerate will provide both regasification services and LNG supply, with a minimum contracted offtake of 250 MMscf/d.

Iraq is under pressure from Washington to diversify its energy sources and limit energy ties with Iran, from where gas exports to Iraq have been repeatedly disrupted due to U.S. sanctions and payment disputes.