Iraq considers its $450 million contract with Excelerate Energy for gas imports to its power plants to be contingent upon the resolution of the US-Iran dispute. This contract was expected to be implemented in the second half of 2026 with the launch of the floating regasification facilities at the port of Khor al-Zubair in Iraq.
Contract Details and Gas Sources
Iraq has not yet specified where it will source liquefied natural gas (LNG), likely because Excelerate is responsible for importing LNG under a contract signed with the Iraqi Ministry of Electricity in late 2025. Iraqi energy analyst Walid Khadduri believes that Qatar is recognized as the most likely LNG supplier for Iraq, but no agreement can be expected in this regard under current conditions.
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Impact of Attacks and Current Situation
In March, Excelerate announced that it received a "force majeure" notice from Qatar Energy, the Qatari state company, related to the long-term LNG supply agreement, due to repeated Iranian attacks and missile strikes. However, the company emphasized that the fundamental principles of the project have not changed and that due to chronic electricity shortages and limited domestic gas processing capacity in Iraq, the need to build sustainable and scalable LNG import infrastructure is essential.
A spokesperson for Excelerate stated to project stakeholders that the company will announce details about the project start and gas supply in future reports. Additionally, they did not disclose details regarding the reasons for the agreement with Iraq.
The Iraqi Ministry of Oil confirmed last month that Excelerate will identify the LNG supplier under its contract, which includes an initial supply of 240 million cubic feet per day and has the capacity to expand to 400 million cubic feet per day. Ministry spokesperson Salem Al-Rikabi emphasized in his statements that the signed contract with Excelerate holds the responsibility for the complete gas supply.
Iraq decided to purchase a floating storage and regasification unit last year after a sharp decline in Iranian gas supply, which accounts for nearly 40% of electricity generation in Iraq's gas-fired power plants. This decision was also made following the failure to realize a memorandum of understanding with Turkmenistan for gas imports due to US objections.
In recent months, Iraqi officials have traveled to Qatar to negotiate a potential LNG supply agreement, and the topic of imports from Oman was discussed during former Prime Minister Mohammed Al-Sudani's recent trip to Oman in September 2025. Nabil Al-Marsoumi, a prominent Iraqi economist, stated that under current conditions, delays in the gas import program are natural and believes that Iraq will advance this program as soon as the situation returns to normal.
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