Mayer Brown advises Excelerate Energy in relation to fully integrated floating LNG import terminal in 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 (MMscf/d). Under the agreement, Excelerate will construct the floating LNG import terminal, which is designed to accommodate a guaranteed 500 MMscf/d of regasification capacity.

Excelerate will deploy Hull 3407, its newest floating storage and regasification unit (FSRU), and will be responsible for delivering the topside equipment and berth modifications to enable FSRU operations at the jetty. The total project investment is expected to be approximately US$450 million, inclusive of the cost of the FSRU.

As part of the integrated arrangement, Excelerate will serve as the LNG supplier to the terminal. Commercial operations are expected to commence in 2026, subject to final permitting and construction timelines, and other closing conditions.

Mayer Brown’s role included advising on the drafting and structuring of the integrated documentation package for the agreement. The team advised Excelerate on key commercial and risk allocation issues, as well as on the interfaces between LNG and natural gas supply in addition to regasification services, in order to create a fully integrated agreement for the project.

Commenting on the transaction, Nick Kouvaritakis, global co-head of Mayer Brown’s Global Energy practice and global head of LNG, said: “We are delighted to have advised long-term client Excelerate on this landmark agreement with Iraq’s Ministry of Electricity. This strategically important project will deliver critical gas infrastructure and supply diversity to Iraq, and we are proud to have supported Excelerate on its delivery of this fast-track energy solution for Iraq.”