Dwindling oil revenues following the closure of the Strait of Hormuz coupled with delays forming a new government have squeezed Iraq’s finances, limiting available funds for new infrastructure. Iraq has yet to honor contractual payments to Excelerate Energy, the US firm contracted to build the country’s first LNG terminal.
This has delayed work on berth modifications at Khor al-Zubair port that are required before the terminal can receive LNG cargoes. If payment is made soon, imports may start in winter, either in late 2026 or early 2027. But further slippage risks pushing terminal operations to summer 2027, dealing a huge blow to Iraq’s efforts to diversify supply and reduce dependence on Iranian gas. (CONTINUED – 1139 WORDS)
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