Iraq has approved a $48mn minimum contractual payment to Excelerate Energy to begin works on the country’s first LNG import terminal, a source confirms. The payment is expected to be processed in a couple of weeks, allowing the US firm to begin berth modifications at Khor al-Zubair port so that LNG cargoes can be received.
The move follows a warning issued by the electricity ministry on 26 April that the project “may be disrupted due to the closure of the Strait of Hormuz.” Excelerate’s floating storage and regasification unit (FSRU) Acadia is ready but delays due to regional hostilities and Iraq’s earlier inability to secure payment have already pushed back first imports beyond this summer (MEES, 24 April). (CONTINUED - 216 WORDS)