US LNG developer Excelerate Energy has begun dredging work on its floating storage and regasification unit for Iraq.

US LNG developer Excelerate Energy has begun dredging work on its floating storage and regasification unit (FSRU) for Iraq, the company announced in its second quarter report on August 5. A project update revealed that engineering and procurement activities are almost finished and that the Middle East conflict between the US, Israel, and Iran has not hindered development of the country’s first LNG import terminal. With engineering work almost finished, dredging activities and site clearance are underway for the FSRU, which will come with a price tag of $450 mn. Excelerate inked a five-year deal for LNG supply and regasification services with a subsidiary of Iraq’s Ministry of Electricity in October 2025. An extension option is also available. Under the terms of the deal, Iraq will purchase a minimum of 250 mn standard cubic feet (7.1 mn cubic metres) per day. The FSRU will boast a regasification capacity of 500 mn standard cubic feet (14.2 mn cubic metres) per day. Excelerate’s newest FSRU, Hull 3407, will be deployed at the Port of Khor Al Zubair, about 50 km south of Basra, bordering both Kuwait and Iran. The FSRU is currently under construction in South Korea. Baghdad is in the midst of attempting to diversify its energy supply and reduce dependence on gas imports from its neighbour, Iran, particularly since US sanctions have disrupted flow of supply. Iraq will transport the regasified fuel through pipelines and integrate it into the national energy grid. Amid Washington’s threats to block Iraq’s electricity imports from Iran, Iraq had previously considered importing LNG from Gulf suppliers Oman and Qatar. Baghdad first opened talks with Excelerate in June 2025, when it received a handful of offers for its tender to procure cargoes of the super-chilled fuel. It then relaunched the tender in August, before selecting Excelerate in October.

Investing.com -- Iraq is in advanced talks with Excelerate Energy Inc. to secure its first-ever liquefied natural gas imports as the country works to reduce its dependence on Iranian energy supplies. The Texas-based company is among several firms that have submitted bids to provide an LNG import ship and secure fuel supplies, according to Ali Salman, acting director general for Iraq’s state-run South Gas Co., which is overseeing the project. When contacted, an Excelerate representative declined to comment on the negotiations. Iraq’s move toward LNG purchases follows its decision earlier this year to halt electricity imports from neighboring Iran after the United States ended a sanctions waiver that had been ordered by President Donald Trump. The termination of this waiver was intended to increase pressure on Tehran. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- Shares of Excelerate Energy , Inc. (NYSE:EE) tumbled over 6% in pre-market trading after the company announced the pricing of an upsized public offering of its Class A common stock. The offering was increased from the previously announced $150 million to approximately $184.3 million, which represents the gross proceeds before underwriting discounts and estimated offering expenses. The company’s stock closed at $28.68 on Monday but was trading at $26.88 pre-open following the pricing of the offering at $26.50 per share. Excelerate Energy has also granted the underwriters a 30-day option to purchase up to an additional 1,043,478 shares at the public offering price minus the underwriting discounts and commissions. The proceeds from the offering, along with the expected incurrence of approximately $650 million of senior indebtedness and cash on hand, are intended to fund the acquisition of New Fortress Energy (NASDAQ:NFE), Inc.’s business in Jamaica, which is valued at $1.055 billion, subject to adjustments. The offering’s closing, expected around April 2, 2025, is not contingent upon the completion of the pending acquisition. Several financial institutions are involved in the transaction, with Barclays and Morgan Stanley serving as lead book-running managers. Credit Agricole (OTC:CRARY) CIB, DNB Markets, Jefferies, and Wells Fargo Securities are acting as joint book-running managers, while BNP PARIBAS and Raymond James are co-managers. Investors reacted to the news by selling off shares, likely due to concerns about the dilution of existing shares and the potential impact on the company’s financials. The acquisition of New Fortress Energy’s business in Jamaica is a significant move for Excelerate Energy, aiming to expand its operations and market presence. However, the immediate market response reflects investor caution as the company takes on additional debt and increases its share count. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.