U.S. LNG Project in Iraq Signals Shift in Regional Energy Influence

Operations at the Port of Khor Al Zubair are scheduled to commence in the second quarter of 2027. The project, led by U.S.-based Excelerate Energy, marks Iraq’s first-ever LNG import terminal. While the initial budget is pegged at US$450 million, sources close to the Iraqi Oil Ministry suggest this figure serves merely as a baseline for the development. Excelerate will manage the entire scope of the project, from dredging and site clearance to the installation of floating storage and regasification units, while simultaneously acting as the primary fuel supplier.

The facility is designed to handle a regasification capacity of 500 million standard cubic feet per day, with Iraq committing to a daily intake of at least 250 million. Beyond the technical specifications, the project serves a broader geopolitical objective. Washington has long sought to reverse the integration between Baghdad and Tehran, which has historically allowed Iranian interests to bypass international sanctions. By positioning Iraq as an LNG hub, the U.S. aims to decouple the country from the economic and military spheres of influence held by Beijing and Tehran, effectively leveraging its status as the world’s leading LNG exporter to reshape Middle Eastern energy dependencies.