Iraq faces a severe energy crisis as US sanctions targeting Iranian gas imports threaten to cut off a significant portion of its electricity supply. Iraqi officials are seeking alternative energy solutions to avoid blackouts, while grappling with longstanding energy dependency on Iran and insufficient domestic production capabilities.
Iraq is in a precarious situation as it grapples with an impending energy crisis following President Trump’s sanction revocation of Iranian gas and electricity imports. This change threatens to sever nearly 40% of Iraq’s power supply. To counter this move, Iraqi officials are urgently working to secure alternative energy resources to stave off widespread blackouts.
Historically, Iraq has struggled with low domestic power production, forcing households to rely on private generators. Since the 1990s, electricity rationing has been common, with imports from Iran making up 33% to 40% of its electricity and gas supply. Ongoing US sanctions complicate Iraq’s ability to finance these imports.
On January 31, 2025, Trump’s executive order eliminated Iraq’s exemption regarding Iranian energy imports, as part of broader sanctions targeting Iran’s economy, including its energy sector. The directives aim to prevent Iraq from utilizing its financial system for Iranian sanctions evasion and curtail Iranian energy exports to other countries.
In light of these developments, members of Iraq’s Parliament’s Oil and Gas Committee plan to host key officials from the electricity and oil ministries. Their objective is to explore potential solutions to secure exemptions from sanctions regarding Iranian energy imports.
Parliament member Bassem Naghimash criticized Iraq’s limited diversification of gas sources amidst the current crisis. He highlighted proposals for deals with Jordan, Turkmenistan, and Qatar, alongside utilizing indigenous gas resources. However, he lamented the government’s insufficient support for domestic gas initiatives.
Another committee member, Kazem Al-Touki, acknowledged Qatar as a potential gas supplier but noted logistical issues, including the lack of gas platforms at Iraqi ports. This reliance has forced Iraq to negotiate with Turkmenistan, a plan further hindered by US sanctions on Iranian intermediaries.
With the situation dire, experts like Saeed Shavardi assert that Iran may still provide gas to Iraq, despite the sanctions. He anticipates that the Iraqi government, under Prime Minister Mohammed Shia Al-Sudani, may resist US pressure to safeguard its energy needs, which are vital for the population.
Economist Nabil Al-Marsoumi reiterated the gravity of the situation, warning that the sanctions could lead to a considerable electricity shortfall, affecting millions as Iraq’s grid relies heavily on Iranian gas. The anticipated withdrawal of this support spells an energy crisis for Iraq.
To mitigate the crisis, Iraq is exploring regional electricity connection projects. Earlier in 2023, it signed an agreement with Turkmenistan to import gas, which is expected to cut reliance on Iranian gas by 50%. However, delays in domestic gas projects mean dependence on imports will continue.
The background of Iraq’s energy crisis is rooted in its long-standing reliance on Iranian electricity and gas imports due to insufficient domestic power generation capacity. This dependence, coupled with US sanctions, has created a complex environment that jeopardizes Iraq’s energy stability. The political landscape adds further complications as Iraqi officials attempt to navigate these challenges while maintaining essential services for the population.
In summary, Iraq is facing an imminent energy crisis due to the revocation of its sanction exemption for Iranian gas imports, which threatens 40% of its electricity supply. The Iraqi government is actively seeking alternative energy sources while grappling with the complexities of US sanctions. Long-term solutions include diversifying energy imports and enhancing domestic production capabilities, but immediate action is crucial to prevent widespread blackouts and societal unrest.
Original Source: shafaq.com
