2025-10-31T18:27:37+00:00

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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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