Excelerate Energy to build Iraq’s first LNG import terminal

BAGHDAD - Excelerate Energy, Inc. (NYSE:EE), a $2.88 billion market cap company with strong financial health according to InvestingPro analysis, has signed a definitive commercial agreement with Iraq’s Ministry of Electricity to develop the country’s first liquefied natural gas (LNG) import terminal at the Port of Khor Al Zubair, according to a company press release.

The five-year agreement includes both regasification services and LNG supply with extension options. The project will have a minimum contracted gas offtake of 250 million standard cubic feet per day (MMscf/d), with the terminal designed to accommodate up to 500 MMscf/d of regasification capacity.

Excelerate will deploy Hull 3407, its newest floating storage and regasification unit (FSRU) currently under construction in South Korea. The vessel features 170,000 cubic meters of storage capacity and regasification capability of up to 1 billion standard cubic feet per day.

The total project investment is expected to be approximately $450 million, including the cost of the FSRU. With a healthy current ratio of 2.6 and moderate debt levels, Excelerate appears well-positioned to handle this investment. Excelerate will also be responsible for delivering topside equipment and berth modifications to enable operations at the jetty. InvestingPro subscribers can access detailed financial health metrics and 10+ additional ProTips about EE’s investment potential.

The agreement was signed at the Office of the Prime Minister in a ceremony attended by Iraqi Prime Minister Mohammed Shia’ al-Sudani, Minister of Electricity Ziyad Ali Fadhil, Excelerate’s President and CEO Steven Kobos, U.S. Deputy Secretary of Energy James Danly, and Chargé d’Affaires of the U.S. Embassy in Baghdad Joshua Harris.

Commercial operations are expected to commence in 2026, subject to final permitting, construction timelines, and other closing conditions.

The terminal will enable Iraq to access global LNG markets for the first time, potentially reducing the country’s reliance on imported pipeline gas as it works to meet growing electricity demand. With revenue growth of 9.86% and analysts expecting continued profitability, Excelerate Energy appears slightly overvalued according to InvestingPro Fair Value calculations. Investors can access the comprehensive Pro Research Report, available for 1,400+ US stocks, for deeper insights into EE’s growth prospects and valuation metrics.

In other recent news, Excelerate Energy reported its second-quarter 2025 earnings, with an earnings per share (EPS) of $0.34, surpassing analyst expectations of $0.29. Despite this positive earnings result, the company’s revenue fell short, coming in at $204.6 million compared to the forecasted $243.2 million. In a move to expand its operations, Excelerate Energy received an official Award Letter from the Government of Iraq to develop a floating liquefied natural gas (LNG) import terminal. This development follows the announcement of an agreement to supply American LNG to Iraq, although specific terms were not disclosed.

Additionally, Wells Fargo upgraded Excelerate Energy’s stock rating to Equal Weight from Underweight, citing expanded growth opportunities following the company’s acquisition in Jamaica. The firm adjusted its price target to $26.00, up from $23.00. Meanwhile, JPMorgan initiated coverage on Excelerate Energy with a Neutral rating and set a price target of $30.00. These updates indicate a mixed but active period for the company, with significant developments in both financial performance and strategic initiatives.

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