LNG

Iraq’s power sector remains vulnerable to fluctuations in Iranian gas supplies, prompting Baghdad to press ahead with plans to import LNG through the country’s first floating terminal, developed by Excelerate Energy.

Excelerate Energy has agreed to deploy Iraq’s first floating LNG import terminal at the port of Khor Al-Zubair, offering regas services for a minimum contracted offtake of 250 million cubic feet per day. Project investment totals $450 million, inclusive the cost of the FSRU and jetty modifications.

The Iraqi government plans to seal an agreement with Excelerate Energy to import US LNG via a floating storage and regas unit. The FSRU could supply up to 500 MMcf/d, potentially replacing about half of the gas previously sourced from Iran.

Iraq is nearing completion on its first ever LNG purchase agreement, as the country struggles to meet growing electricity demand amid recurring power outages. Excelerate Energy is one of the leading bidders in a competitive tender and currently in advanced talks with Iraq’s state-run South Gas Company.

Petróleo Brasileiro, which was the first national oil company to import LNG to chartered floating storage and regasification units (FSRUs) back in 2009 while never developing LNG production itself, reported a 76 percent surge in oil-led net profits as the government also brought in a new tax on energy companies exporting oil.

FSRU owner and operator, Excelerate Energy reported a net loss of $4 mill for the second quarter of this year, which reflected an expected $21.8 mill one-time charge for an IPO-related FSRU acquisition. 

Qatar Gas Transport Co. (QGTC), the LNG shipping company of Qatar, has signed an agreement with US floating import project company Excelerate Energy to form a joint venture firm and as a start has acquired a 55 percent interest in a floating storage regasification unit.

Bangladesh is now a liquefied natural gas importer after a floating storage and regasification unit (FSRU) provided by Excelerate Energy of the US arrived at the Asian nation’s Moheshkhali Island on the Bay of Bengal and unloaded a commissioning cargo supplied by Qatar.

Bangladesh has signed its first initial LNG supply agreement with Qatar after recent progress on establishing the Asian nation’s first import facility at an island in the Bay of Bengal.

Excelerate Energy, the US developer of LNG terminals, said it signed a letter of intent with Daewoo Shipbuilding and Marine Engineering of South Korea for the delivery of up to seven floating storage and regasification units (FSRUs), depending on future market demand.