US FSRU player Excelerate Energy now estimates capital costs for Iraq's first LNG terminal to range between $520 million and $550 million, inclusive of the cost of the newbuild FSRU, according to CEO Steven Kobos.
In October 2025, Excelerate executed a definitive commercial agreement with a subsidiary of Iraq’s Ministry of Electricity for the development of the country’s first LNG import terminal at the port of Khor Al Zubair.
The company will deploy its newest FSRU, currently under construction in South Korea and scheduled for delivery in the second quarter of 2026, to Iraq.
The integrated project includes a five-year agreement for regasification services and LNG supply with extension options, and a minimum contracted offtake of 250 million standard cubic feet per day.
Exclerate said at the time that the total project investment is expected to be approximately $450 million, inclusive of the cost of the FSRU.
Jetty
Kobos said during Exclerate’s earnings call on February 26 that site mobilization and early construction activities for the integrated LNG import terminal at the port of Khor Al Zubair are underway.
He said engineering and procurement activities are progressing, long-lead items have been ordered, while Excelerate has executed the lease for the existing jetty.
“As the project has advanced into detailed engineering, we refined the structural design of the jetty to ensure it can support safe, long-term terminal operations. These refinements required additional scope, including structural reinforcement, which has resulted in higher estimated construction capital,” he said.
“As the project moves forward, we’re gaining better visibility and are refining our financial assumptions based on scope and commercial terms. Total estimated capital costs for the Iraq terminal are now expected to range between $520 million and $550 million, inclusive of the cost of the FSRU,” he said.
Kobos said the all-in cost of the vessel remains roughly $370 million, with about $220 million remaining to be paid for the vessel in the second quarter of this year.
“From an economic perspective, while total CapEx estimates have increased, we are now expecting annual terminal operating costs to be considerably lower. The Iraq project is expected to achieve an EBITDA build multiple of approximately 5 times. This is in line with the economics we outlined on our November earnings call at the minimum contracted offtake of 250 million standard cubic feet per day,” he said.
Under the contract, deliveries can scale up to 500 million standard cubic feet per day, providing “meaningful upside potential.”
Kobos added that the integrated Iraq terminal remains on track to commence operations in the third quarter of 2026.
Expansion
Kobos also answered a question during the call about the potential expansion of the Iraq LNG project, specifically due to regional instability.
This call took place before coordinated US and Israeli strikes on Iran during the weekend.
Oil, gas, and LNG prices surged following the attacks, while shipowners suspended LNG carrier operations via the Strait of Hormuz.
QatarEnergy also said on Monday that it has stopped production of LNG due to military attacks on its operating facilities in Ras Laffan and Mesaieed.
“I think all eyes are on the region; there’s nothing new there. It’s one of the reasons why we’ve known this project was critical,” Kobos said during the call.
“Iraq, they’ve got 8-12 hours of grid electricity in summer. I mean, just think about that for a second. I mean, imagine if Houston had 8-12 hours of grid electricity in the summer. It’s absurd. It is a massive need. You know, Iran was delivering 800 million scf a day of nat gas, and they still were at 8-12 hours of grid electricity in summer,” Kobos said.
“It’s hard to go find any market around the world that has a more critical, urgent need for LNG,” he said.
“We think this can be far more than five years.. Contract says five years, we’re talking about five years. Contract says a minimum take or pay of 250 million scf of gas. That’s what we’re talking to you all about. You should really be taking seriously the contractual upside that exists in that project, because the fundamentals, they’re robust. They’re the strongest I can imagine for LNG demand globally,” he said. (March 3, 2026, Source: https://lngprime.com/middle-east/excelerate-ups-iraq-lng-project-costs/179091/)
IRAQ - LNG - SUPPLIES - IMPORTS - EXPORTS