Shafaq News

Iraq has taken a major step toward energy independence with plans to build its first floating liquefied natural gas (LNG) import terminal at the port of Khor al-Zubair in Basra, according to a report by the Foundation for Defense of Democracies (FDD).

The project, valued at around $450 million, will be developed by the US-based company Excelerate Energy and is expected to begin operations in 2026. FDD described it as a strategic effort to diversify Iraq’s energy sources and reduce its reliance on Iranian gas imports, which currently supply around 40% of the country’s power generation needs. 

Read more: Energy crisis now political: US halts key Iraqi gas deal

In recent years, repeated disruptions in Iranian gas deliveries—caused by domestic shortages in Iran and political disputes—have led to widespread electricity outages across Iraq.

“The proposed terminal will enable the importation of LNG to support domestic power generation, help stabilize the national grid,” the report stated, adding that it will initially import around 250 million standard cubic feet of gas per day, with plans to expand capacity to 500 million.

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