Wedoany.com Report-Jun 27, Iraq is engaged in advanced discussions with Excelerate Energy Inc., a Texas-based company, to initiate its first liquefied natural gas (LNG) imports. The initiative aims to address chronic power shortages and diversify energy sources for the country’s gas-fired power plants. Ali Salman, acting director general of Iraq’s state-run South Gas Co., confirmed that Excelerate is among several firms bidding to supply an LNG import ship and secure fuel provisions. An Excelerate representative declined to provide comments.

Iraq, OPEC's second-biggest oil producer, doesn't have enough gas to operate its mostly gas-fired power plants and suffers from crippling blackouts every summer when demand peaks.

Iraq, a major oil producer, faces persistent electricity blackouts, particularly during peak summer demand, due to insufficient domestic gas supplies. The country has relied heavily on imported natural gas to meet its energy needs. To enhance energy reliability, Iraq is exploring LNG imports as a solution to bridge supply gaps and reduce wasteful gas flaring from its oil fields.

Farhad Alaaldin, an adviser to Iraq’s prime minister, stated on March 12, 2025: “Iraq has been in talks with Qatar and others to find more solutions.” Additionally, Iraq signed an agreement with Turkmenistan in 2024 to diversify its gas import sources, reflecting efforts to strengthen energy security.

The Iraqi oil ministry has completed a pipeline extension to the Khor Al-Zubair commodities port on the Gulf, where a floating storage and regasification unit will be stationed. This infrastructure will connect regasified LNG to the national gas network, enabling efficient distribution to power facilities.

Iraq’s pursuit of LNG imports aligns with its goal to stabilize its energy supply and support economic development. By securing alternative gas sources, the country aims to reduce disruptions and ensure a steady power supply for its citizens, particularly during high-demand periods.